U.K. Industry and Energy Minister Tim Eggar has outlined to Britain's offshore oil and gas companies plans to speed up exploration in mature areas.
Following next year's 17th offshore licensing round, which will incorporate much of Britain's frontier exploration areas, Eggar plans small annual licensing rounds featuring relinquished acreage.
This follows Eggar's disclosure earlier this year that the Department of Trade and Industry is working to persuade operators to relinquish blocks they had not explored and had no firm plans to drill.
"Of 115 blocks identified as fallow," said Eggar, "when we began the review, 72 now have plans in place for activity within the next 12 months. Fourteen more are to be relinquished in the near future and will then become available for licensing to other companies that may have new ideas and targets to pursue.
"Only seven of these blocks now have no activity planned for the next year. The review identified 19 other blocks where discoveries have been made, but for which there are no present development plans."
Eggar said the government is considering changing licensing regulations solely for mature areas so that allocations would be made on the basis of bids by companies, as is the case in U.S. Gulf of Mexico lease sales.
Other proposals include shortening initial exploration periods in mature areas from current terms to 3-6 years and a new prequalification process designed not to cut out small operators.
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