North Sea back on top for international oil exploration

May 14, 2003
The UK's offshore oil and gas industry received a double boost as the North Sea was confirmed as the global hot spot for new ventures, while the latest licensing round also showed a big upturn of interest.

The UK's offshore oil and gas industry received a double boost as the North Sea was confirmed as the global hot spot for new ventures, while the latest licensing round also showed a big upturn of interest.

Robertson's International New Ventures Survey polled over 200 oil companies and covered 147 countries and showed that the UK has regained its first place in the rankings as the country most favored by oil companies for new ventures in 2003.

"This shows that the UK has a world-class oil and gas industry, and reaffirms our consistent message that there is a lot of life left in the North Sea," said Energy Minister Brian Wilson. "The challenge now is to get licenses into the hands of those companies most likely to use them. The message is getting across to many countries, particularly in North America, who appreciate the remaining potential of the UKCS (continental shelf)."

Wilson also announced the applications for the 21st offshore and 11th onshore licensing round, which show that the momentum of interest generated by the North Sea in recent years continues.

Thirty traditional offshore production license applications were received, along with 40 new promote license applications covering 140 blocks � an increase of over 100 on the previous round last year, and the largest number of blocks applied for since the early 1970s.

Applications were received from 75 companies � 36 of which are potential new comers to the North Sea. Additionally eight applications were received for onshore acreage.

"The promote license is an excellent innovation aimed at bringing in small, clever companies from within the UK and overseas, said Wilson. "In addition to the promote licenses, the Fallow field initiative, and the recent treasury-led consultation to further improve the climate for exploration in the UKCS are ensuring that the area remains an attractive global destination for new entrants. Our policies are working and the global oil and gas industry clearly recognizes the North Sea as a vibrant basin for investment and exploration."

The applications from the 21st offshore and 11th onshore licensing round will now be studied. The applicants will be interviewed by the DTI to ensure that licenses are awarded to those companies with the best ideas and ability for taking prospects forward to development. License awards are planned for August.

05/14/03