The UK Oil and Gas Authority (OGA) has received 29 bids for new licenses to drill offshore oil and gas in the UK Continental Shelf (UKCS).

As part of the 29th licensing round, the companies have placed bids for licenses covering 113 blocks targeting under-explored areas of the UKCS.

Launched in July 2016, the licensing round is the first in two decades to focus on frontier areas, which included East Shetland Platform and the Rockall Trough and Mid-North Sea High areas.

OGA CEO Andy Samuel said: “Despite the difficult climate, industry has responded strongly to our offer, using analysis and insights to identify new prospects and submit high quality applications on blocks that did not attract interest in recent licensing rounds.

“This confirms the high remaining potential in the UKCS’ frontier areas.”

The licensing round, which marks the launch of the ‘Innovate License’ concept, is part OGA’s plan to maximize economic recovery (MER) from the UKCS.

The Innovate License concept will allow licensees to work with the UK’s oil and gas industry regulator to design an optimal work program for more appropriate phasing of activity, rental fees and competency tests, and implement a stage-gate process for better progress monitoring.

Samuel added: “The UK Government funded seismic programs and the OGA’s ‘Innovate License’ were developed through an industry task group and offer a flexible, pragmatic and focused approach to licensing.

“Licenses awarded will provide continued opportunities for our world-class service sector to develop technology and expertise, and ultimately, should provide new energy supplies to the UK.”

Upon completion of technical evaluation of the bids, the OGA plans to award licenses as early as possible in 2017.

The UK government is planning to launch its 30th offshore licensing round, which will cover mature areas of the UKCS. Th round is expected to offer significant opportunities, including some blocks not available since the 3rd Licensing Round.

Image: UK intends to maximize economic recovery from the UK Continental Shelf. Photo: courtesy of suwatpo/ FreeDigitalPhotos.net.