| Details: | A new consultation will be launched today (Tuesday 24 September) by Energy Minister Brian Wilson to seek views on what changes that could be made to North Sea oil and gas licences to stimulate greater interest from all quarters of the offshore industry.
This comes on the same day that the Department of Trade and Industry (DTI) and its partners in PILOT release the first group of fallow (unexploited) blocks and discoveries on the UK LIFT (Licence Information for Trading) website in a move to unlock untapped oil and gas potential on the UK Continental Shelf (UKCS).
UK LIFT'S Fallow Register has been set up to encourage companies already working in the North Sea as well as new entrants to approach fallow acreage with fresh eyes and come forward with new ideas for exploration and appraisal.
The DTI works closely with the Oil and Gas Industry through PILOT, which has developed the consultation and the Fallow Register to prolong the life of the North Sea and increase the amount of economically recoverable oil and gas.
The consultation on the possible introduction of a promote licence invites comments on a number of issues to see whether:
- the initial 4-year term of a production licence might be split to give time for a company to work up a prospect and promote or sell to others who would put forward a commitment to drill in the second period;
- a promote licence should form part of the traditional licensing round or follow soon after, offering those blocks that have not been applied for.
Brian Wilson, Energy Minister and chairman of PILOT, said: "We want to ensure that our licensing system encourages all those with specialist knowledge and expertise to apply their skills to the considerable opportunities that continue to exist in the North Sea. PILOT has formulated some fresh ideas and we are now seeking the views of the wider industry on the opportunities that a new promote licence would unlock."
The Fallow Register lists a total of 39 assets, along with the current license holder's name, contact details, plus links to further information. The list will be updated on a quarterly basis, with new opportunities added as and when existing fields are declared fallow, to encourage swift exploitation.
The Register has resulted from the work being carried out by the DTI with the industry through PILOT's Progressing Partnership programme, which addresses potential barriers to further North Sea exploitation. It aims to promote the development of some 250 fallow blocks and 130 fallow discoveries on the UK Continental Shelf (UKCS), either by providing the current licensee with an opportunity to buy-in through a co-developer or sell to an outright buyer. Failing this, the scheme will enable the release of the acreage back for re-licensing.
Paul Blakeley, general manager of Talisman Energy (UK) and co-chair of the Industry Leadership Team (ILT) within PILOT said: "The oil and gas industry welcomes the opportunity to reappraise assets that have not been worked for a number of years for possible exploration and development potential. The industry has worked hard within Progressing Partnership to secure progress on this important initiative which will help to maximise economic recovery of Britain's remaining reserves of oil and gas."
The scheme is not intended to be a one-off solution to stimulate short-term activity but is designed to be an enduring part of the UKCS business structure that will promote worthwhile activity in the long term. For more information on the Fallow Initiative, visit the PILOT website (www.pilottaskforce.co.uk) under the Progressing Partnership Work Group final report. |
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