Page 12 - EurOil Week 11 2023

EurOil POLICY EurOil

UK to prioritise fast gas developments

in latest licensing round

UK THE regulator overseeing UK oil and gas licens- 258 blocks and part-blocks from some 76 com-
ing has said it will prioritise the issue of licences panies. The previous UK licensing round con-
The UK launched for gas projects that can be brought quickly into cluded in 2020 received 104 applications for 245
its first oil and gas production, in an effort to ease the country’s blocks and part-blocks.
licensing round since energy crisis. Nevertheless, some operators have com-
2019 last year. The UK launched its first oil and gas licens- plained about the impact of a windfall tax on oil
ing round since 2019 last year, as part of the gov- and gas profits imposed last year by Prime Min-
ernment’s push to improve energy security and ister Boris Johnson’s administration. The levy
reduce energy bills for households and industry. was subsequently raised to 75% of income – a
The North Sea Transition Authority plans to move which Harbour Energy said “wiped out”
start awarding licences to bidders at the end of its profits in 2022. Harbour did not participate
the second quarter of this year, and give prefer- in the latest bidding contest, stating instead it
ence to those companies that can bring extra gas would review its investments in the UK and look
to the market within months. to diversify its portfolio overseas.
“We are doing it slightly differently this time Amid heightened scrutiny about emissions
because we are deliberately prioritising sequen- associated with further exploration and devel-
tially those who can bring gas to the market very opment of the UK coast, the NSTA reported
fast,” NSTA CEO Stuart Payne told Reuters on earlier this month that flaring of unwanted
the sidelines of the CERAWeek conference in gas at platforms had halved between 2018
Texas last week. and 2022. Under the terms of the North Sea
The first priority will be the issue of licences Transition Deal that the industry reached with
to producers able to bring new gas deposits on the government two years ago, operators have
stream within 18 months. This primarily refers committed to bring routine flaring and meth-
to smaller reservoirs found near existing plat- ane venting to zero by the end of the decade.
forms and infrastructure. Other, larger fields are The deal offers operators support for invest-
expected to take years to develop. ments in decarbonisation in return for com-
The UK’s latest oil and gas licensing result mitments to reduce the emissions from the
was hailed as a success, attracting 115 bids for operations ™

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