A section of a BP oil platform in the North Sea, about 100 miles east of Aberdeen in Scotland. Reuters
A section of a BP oil platform in the North Sea, about 100 miles east of Aberdeen in Scotland. Reuters
A section of a BP oil platform in the North Sea, about 100 miles east of Aberdeen in Scotland. Reuters
A section of a BP oil platform in the North Sea, about 100 miles east of Aberdeen in Scotland. Reuters

UK opening new round for North Sea oil and gas licences amid blackout warnings


Gillian Duncan
  • English
  • Arabic

Britain is opening a new licensing round for oil and gas projects in the North Sea to strengthen energy security.

The government’s North Sea Transition Authority (NSTA) will accept applications to explore areas that could lead to more than 100 licences.

Such rounds happen regularly in the UK but officials are trying to quicken development amid a cost-of-living crisis driven by soaring natural gas prices.

It comes as the UK climate minister warned about the risk of blackouts this winter if Britain was not able to import enough energy.

Business and Energy Secretary Jacob Rees-Mogg said: “Putin’s illegal invasion of Ukraine means it is now more important than ever that we make the most of sovereign energy resources, strengthening our energy security now and into the future.

“Ensuring our energy independence means exploiting the full potential of our North Sea assets to boost domestic production.

"That is why we welcome the launch of the NSTA's new licensing round, which will help support highly skilled jobs across the UK's energy industry, boosting both our energy security and our economy."

Applicants are being encouraged to seek licences covering areas to the west of Shetland, in the northern, central and southern North Sea and the eastern Irish Sea.

The NSTA is publishing data packs with summaries of key prospects and discoveries, hoping this will "stimulate exploration and encourage new opportunities".

Almost 900 blocks and part blocks are being made available. But NSTA has identified four "priority cluster areas" in the southern North Sea in a bid to encourage production of new oil and gas supplies as quickly as possible.

The areas — off Norfolk, Lincolnshire and Yorkshire — are known to contain hydrocarbons and are close to existing infrastructure, giving them the potential to be developed quickly.

The NSTA has said it will seek to license these areas before others.

But meaningful production will probably take a decade to come online, according to recent analysis from Wood Mackenzie.

“New oil and gas licences won’t lower energy bills for struggling families this winter or any winter soon nor provide energy security in the medium term,” Philip Evans, a campaigner for Greenpeace UK, said in a statement.

NSTA's chief executive Andy Samuel insisted that security of supply should "not be in conflict with net zero" before a new round of licensing in the North Sea.

"The NSTA is working closely with industry and government to meet UK needs with North Sea supplies produced as cleanly as possible,” he said.

"The UK is forecast to continue importing natural gas as we transition to a fully renewables system and our North Sea gas has less than half the footprint of imported LNG [liquefied natural gas].

"This licensing round includes gas discoveries in the southern North Sea which can be rapidly tied back to existing infrastructure."

Mike Tholen, acting chief executive for industry body Offshore Energies UK, said: "The UK gets 75 per cent of its total energy from gas and oil so producing our own reduces our vulnerability to global shortages of the kind caused by the Ukraine conflict.

"There is no conflict between issuing new licences and reaching carbon neutrality.

"Our industry is committed to net zero and also to helping build the low-carbon energy systems of the future. But this is a journey that will take decades during which we will still need gas and oil.

"Many existing UK oil and gasfields are in decline so the risk is that production will drop much faster than demand, leaving us more dependent on imports. That is why new licences are so important.

"New licences also help maintain continuity for the energy operators and for our vital supply chain companies which, between them, employ over 200,000 people.”

Speaking on Sky News on Friday, Britain’s Minister for Climate Graham Stuart said the new licensing round was not at odds with the government’s policy on net zero.

“Absolutely not," he said. "What you have to remember is we have led the world on reducing emissions. We are the first major country to legislate for net zero.

“If you look at gas and oil, we will be burning gas, albeit at a quarter of what we do today, in 2050 under our net zero programme.”

He said the energy crisis means the UK was facing higher risks of blackouts than in previous winters. But he did not expect planned rationing or blackouts to occur.

“That’s not our expectation at all," he said. "But you have seen all sorts of things happening in recent weeks and we plan for all eventualities.

“The public should be confident we have a very strong and diverse supply, that we have taken all the steps to look after our needs this winter and we also of course taking, and the prime minister has been looking at this, to make sure we aren’t in as vulnerable a position again in the future.”

Huddersfield Town permanent signings:

  • Steve Mounie (striker): signed from Montpellier for £11 million
  • Tom Ince (winger): signed from Derby County for £7.7m
  • Aaron Mooy (midfielder): signed from Manchester City for £7.7m
  • Laurent Depoitre (striker): signed from Porto for £3.4m
  • Scott Malone (defender): signed from Fulham for £3.3m
  • Zanka (defender): signed from Copenhagen for £2.3m
  • Elias Kachunga (winger): signed for Ingolstadt for £1.1m
  • Danny WIlliams (midfielder): signed from Reading on a free transfer
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The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

The biog

DOB: 25/12/92
Marital status: Single
Education: Post-graduate diploma in UAE Diplomacy and External Affairs at the Emirates Diplomatic Academy in Abu Dhabi
Hobbies: I love fencing, I used to fence at the MK Fencing Academy but I want to start again. I also love reading and writing
Lifelong goal: My dream is to be a state minister

No Shame

Lily Allen

(Parlophone)

if you go

The flights

Emirates fly direct from Dubai to Houston, Texas, where United have direct flights to Managua. Alternatively, from October, Iberia will offer connections from Madrid, which can be reached by both Etihad from Abu Dhabi and Emirates from Dubai.

The trip

Geodyssey’s (Geodyssey.co.uk) 15-night Nicaragua Odyssey visits the colonial cities of Leon and Granada, lively country villages, the lake island of Ometepe and a stunning array of landscapes, with wildlife, history, creative crafts and more. From Dh18,500 per person, based on two sharing, including transfers and tours but excluding international flights. For more information, visit visitnicaragua.us.

BRAZIL%20SQUAD
%3Cp%3EGoalkeepers%3A%20Alisson%2C%20Ederson%2C%20Weverton%3Cbr%3E%3Cbr%3EDefenders%3A%20Dani%20Alves%2C%20Marquinhos%2C%20Thiago%20Silva%2C%20Eder%20Militao%20%2C%20Danilo%2C%20Alex%20Sandro%2C%20Alex%20Telles%2C%20Bremer.%3Cbr%3E%3Cbr%3EMidfielders%3A%20Casemiro%2C%20Fred%2C%20Fabinho%2C%20Bruno%20Guimaraes%2C%20Lucas%20Paqueta%2C%20Everton%20Ribeiro.%3Cbr%3E%3Cbr%3EForwards%3A%20Neymar%2C%20Vinicius%20Junior%2C%20Richarlison%2C%20Raphinha%2C%20Antony%2C%20Gabriel%20Jesus%2C%20Gabriel%20Martinelli%2C%20Pedro%2C%20Rodrygo%3C%2Fp%3E%0A
THE DETAILS

Kaala

Dir: Pa. Ranjith

Starring: Rajinikanth, Huma Qureshi, Easwari Rao, Nana Patekar  

Rating: 1.5/5 

Hili 2: Unesco World Heritage site

The site is part of the Hili archaeological park in Al Ain. Excavations there have proved the existence of the earliest known agricultural communities in modern-day UAE. Some date to the Bronze Age but Hili 2 is an Iron Age site. The Iron Age witnessed the development of the falaj, a network of channels that funnelled water from natural springs in the area. Wells allowed settlements to be established, but falaj meant they could grow and thrive. Unesco, the UN's cultural body, awarded Al Ain's sites - including Hili 2 - world heritage status in 2011. Now the most recent dig at the site has revealed even more about the skilled people that lived and worked there.

Updated: October 07, 2022, 7:20 AM