U.K. Sets 5-year Offshore Licensing Plan

U.K. Department of Trade & Industry (DTI) has disclosed a 5-year plan for offshore exploration licensing, which will include opening disputed territory near the Faroe Islands. The U.K. government is in negotiations with the Danish government, which has sovereignty of the Faroes, to define the maritime boundary between northwestern Scotland and the Faroes. DTI said that when agreement is reached on the Faroes maritime boundary, the U.K. government will "as soon as practicable" open up acreage on

Aug. 11, 1997

2 min read

U.K. Department of Trade & Industry (DTI) has disclosed a 5-year plan for offshore exploration licensing, which will include opening disputed territory near the Faroe Islands.

The U.K. government is in negotiations with the Danish government, which has sovereignty of the Faroes, to define the maritime boundary between northwestern Scotland and the Faroes.

DTI said that when agreement is reached on the Faroes maritime boundary, the U.K. government will "as soon as practicable" open up acreage on the U.K. side of the boundary for licensing and exploration.

Upcoming rounds

The next licensing round, the U.K.'s 18th, will be opened this year and cover mature areas in the northern, central, and southern U.K. North Sea, along with the Morecambe and Liverpool Bay areas of the Irish Sea.

Formal announcement of the round is expected in the fall, after which companies will have 90 days to submit license applications. DTI expects to award licenses sometime during March-April 1998.

Following the 18th round, there will be an annual licensing round offering acreage in a mixture of mature and semi-mature offshore provinces, said DTI.

In autumn 2000, DTI intends to organize a "frontier" licensing round, probably the U.K.'s 21st round, to allow offering of acreage awarded in earlier frontier rounds and relinquished earlier that year.

Government is also planning a "suspended well initiative" to review significant finds that remain undeveloped or incompletely tested 6 years after discovery.

DTI said, "Officials are working on a review of fallow discoveries with licensees to encourage companies to reconsider plans for them."

Coalbed methane

The government is considering introducing a new type of license for coalbed methane exploration, to encourage developments in Britain's many derelict coal fields.

A DTI official explained that current oil and gas exploration licenses are unsuited to coalbed methane projects principally in planning requirements: "Not many oil and gas fields have been developed in the middle of communities."

Companies are currently considering bidding for coalbed methane prospects under the U.K.'s 8th onshore licensing round, disclosed in March. Deadline for license applications is Oct. 2.