Announcing the awards, junior Energy Minister Richard Page said applications were "fast tracked" to allow operators to make the most of summer weather to begin exploration programs.
Page said, "Our fast tracking of these applications means that more than 1,700 sq km of 3D seismic surveys will be shot this summer, with even more to come in 1996."
Initial commitments call for industry to drill 12 wells in the next 2 years.
The blocks attracted a large volume of applications, with one block receiving eight.
Wood Mackenzie Consultants Ltd., Edinburgh, said four key factors influenced companies' applications for blocks: proximity to discoveries, access to the Tertiary oil play identified by BP Exploration Operation Co. Ltd. with its Foinaven and Schiehallion discoveries, consolidation of acreage holdings, and access to exploration potential for Tertiary gas in the northern part of the region.
A total 29 companies in 14 groups won exploration licenses. Most groups had two or three companies as members, with only one group involving four companies.
"This marks a focusing among participants and a step away from previous trends for large groups and the problems of agreeing on exploration and appraisal strategies," Wood Mackenzie said.
Amerada Hess Ltd., BP, and Shell U.K. Ltd. were the most successful applicants in terms of block interests awarded, each securing eight.
"This is not surprising, given that these three companies have been responsible, through their recent discoveries, for the surge in activity in this new hydrocarbon province," Wood Mackenzie said (OGJ, June 20, 1994, p.
16).
Amerada Hess displaced Conoco (U.K.) Ltd. as the holder of most gross acreage in the West of Shetlands area.
"While operatorships have in the main been allocated to companies that currently hold them in the region," said Wood Mackenzie, "two companies, Deminex U.K. Oil & Gas Ltd. and Kerr-McGee Oil (U.K.) plc, are new operators."
Both companies already hold an interest in one block in the area, 204/30a, that contains the Strathmore discovery, under appraisal by Amerada Hess.
Wood Mackenzie noted that Esso Exploration & Production U.K. Ltd. returned to the region as an operator, having sold its interest in the Clair discovery to Amerada Hess in October 1994.
License winners are required to complete work obligations during an initial 6 year period, after which 50% of the license area must be surrendered. The exploration license can then be retained for as long as 30 years.
U.K. Department of Trade & Industry intends to announce remaining license awards under the 16th round this summer. These will consist of blocks around the coast of Britain and north of Scotland.
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