The North Sea Transition Authority (NSTA) has awarded 24 licenses to 17 companies. Including Shell, Equinor, BP, Total Energies, and also NEO. In the second tranche of the UK’s 33rd oil and also gas licensing round. On January 31, 2024, NSTA made an offer covering 74 blocks and also sub-blocks in the central North Sea. Northern North Sea, and western Shetland Islands. The new awards will help ensure job security and benefit local areas and also the wider economy. Bringing the total number of offers to 51, following the 27 licenses. Offered in the first allocation in October 2023, and further Many licenses will be available.
The NSTA
The NSTA says this will continue in the coming months. The remaining concessions, most of which are located in the southern North Sea and the eastern Irish Sea. Will be offered upon completion of an environmental assessment, including an associated Habitat Regulatory Assessment (HRA) by OPRED. Internal NSTA analysis indicates that the average time from license acquisition to first commercialisation is currently nearly five years. And that currently acquired licenses could be commercialised within ten years.
Domestic energy supply not only provides skilled jobs and supports the economy. But it also plays a key role in reducing greenhouse gas emissions and enables further decarbonisation of UK domestic production. Emissions during production were reduced by more than a fifth between 2018 and 2022. Projections suggest the sector is on track to meet the reduction targets of 10% by 2025 and 25% by 2027, as agreed in the North Sea Transition Agreement in 2021.
Development Agreement
NSTA signed a development agreement on January 17, granting production approval for the Victory gas field. They will support projects with an estimated total net gas production of 4.6 million households in the UK, equivalent to his one-year average gas demand or the 1.5-year average gas demand of all households in Scotland. Carbon storage, for which NSTA has issued 21 licenses in 2023, and hydrogen, for which NSTA has been appointed marine transport and storage regulator, will also help support efforts to achieve net zero emissions by 2050. It can play an important role. The 33rd licensing round began in October 2022, with over 900 blocks deployed. The application period closed in January 2023, and he received 115 offers from 76 companies. This demonstrates the industry’s continued appetite to explore the UK continental shelf.
This round is a key part of the North Sea Transition Authority’s (NSTA) efforts to support the oil and gas industry, which currently accounts for around three-quarters of the country’s energy demand. Despite the increase, this trend is likely to continue. Official forecasts have been revised downward. “We will continue to need oil and gas for decades to come, which is why domestically produced gas is almost four times cleaner than importing liquefied natural gas (LNG) from abroad; it makes sense to make the most of our resources.” “These new licenses will strengthen our current and future energy security while creating 200,000 jobs and generating £16 billion each year.” It will help boost the economy by supporting an industry worth ($20.Three billion),” said Graham Stewart, Minister for Energy and Security.
