New licensing round boosts North Sea oil and gasNews // January 24, 2014
The UK economy is set to receive a further boost as the government opens the 28th licensing round. Companies can now apply for new licences to drill for offshore oil and gas in the North Sea.
Increasing recovery of UK oil and gas will enhance energy security, support thousands of jobs and provide billions in increased tax revenues.
The UK oil and gas sector already supports around 350,000 jobs, and last year attracted a record £14 billion of capital expenditure as well as supplying around half of the UK’s primary energy demand.
Energy Minister Michael Fallon said: “There continues to be extremely high level of interest in North Sea oil and gas, which is unsurprising when there could be as many as 20 billion barrels of oil still buried deep within the seabed.
"This new round of drilling for offshore oil and gas will help boost growth, energy security, and jobs in the UK.”
This latest licensing round supports the efforts of Government and industry's joint Oil and Gas Industrial Strategy, which is working to secure future decades of investment and production in the North Sea.
The previous 27th Licensing saw a record number of licences awarded, including 21 new entrants, and the level of interest demonstrates the continuing attractiveness of the UK’s oil and gas resources. There are now over 50 companies at work in the North Sea.
Last year 36 offshore projects, with an associated capex of over £9 billion, were approved, which provide tax revenues of £6.5 billion on production and a further £5 billion through the wider supply-chain in corporate and payroll taxes.