U.K. announces offshore license awards

U.K 18th Offshore Licensing Round Awards Chart [105,000 bytes] The U.K. Department of Trade and Industry has awarded 78 North Sea blocks close to existing infrastructure under its 18th offshore licensing round. Announcing the awards, John Battle, energy and industry minister, said the awards were made to a total of 44 companies, of which 22 are operators of one or more blocks (see table, this page). "The applications," said Battle, "showed that companies are still thinking creatively and

Dec. 14, 1998

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U.K 18th Offshore Licensing Round Awards Chart [105,000 bytes]

The U.K. Department of Trade and Industry has awarded 78 North Sea blocks close to existing infrastructure under its 18th offshore licensing round.

Announcing the awards, John Battle, energy and industry minister, said the awards were made to a total of 44 companies, of which 22 are operators of one or more blocks (see table, this page).

"The applications," said Battle, "showed that companies are still thinking creatively and generating innovative proposals to identify significant new prospects in the North Sea.

"The willingness of companies to test innovative thinking with both further technical analysis and early drilling, where appropriate, confirms that the industry still sees the North Sea as an exploration area with significant potential in undiscovered reserves."

Battle said that, when the round was opened in June, the department expected that most applications would focus on acreage close to existing developments or infrastructure, where any discoveries could be brought on stream quickly to prolong the life of producing fields.

"In the event," said Battle, "a majority of the applications reflected this pattern, and there was strong competition for several blocks. An unexpected number of applications identified strata and structures with previously unrecognized hydrocarbon potential.

"Some of these concepts were developed in blocks that have been licensed and explored for conventional targets before. Twelve of the blocks awarded have not previously been licensed.

"Eight of these are granted to the Shell/Esso (the Shell U.K. Exploration & Production operating venture of Shell U.K. Ltd. and Esso Exploration & Production U.K. Ltd. partnership), whose application stood out for its creative approach."