|
U.K. North Sea tops for exploration, says Robertson survey
Kay Cashman Petroleum News Publisher & Managing Editor
In early May, Brian Wilson, the United Kingdom’s energy minister, told attendees at the annual Offshore Technology Conference in Houston that the U.K. North Sea continental shelf is the global hot spot for new ventures.
He quoted Robertson's International New Ventures Survey which polled more than 200 oil companies in 147 countries, showing that the United Kingdom has reclaimed first place as the country most favored by oil companies for new ventures in 2003.
Wilson also announced the applications for the 21st Offshore and 11th Onshore licensing rounds that closed May 8. Thirty traditional offshore production license applications were received, along with 40 new “promote” license applications covering a total of 140 blocks. It was the largest number of blocks applied for since the early 1970s and an increase of more than 100 on the 2002 round.
Seventy-five companies submitted offshore applications; 36 were potential newcomers to the North Sea. Eight applications were received for onshore acreage.
New government policies have worked “Today's announcements are fantastic news for the U.K. oil and gas industry. It proves that the innovative and determined promotion of the North Sea undertaken by this government is reaping rewards,” Wilson told OTC attendees.
“I am delighted with the response to the latest licensing round and in particular with the number of newcomers who have applied. … The promote license is an excellent innovation aimed at bringing in small, clever companies from within the U.K. and overseas,” he said.
Wilson also credited the U.K.’s Fallow Field Initiative and the “recent Treasury-led consultation to further improve the climate for exploration in the U.K.CS” as helping keep the U.K. North Sea “an attractive global destination for new entrants.
“Our policies are working and the global oil and gas industry clearly recognizes the North Sea as a vibrant basin for investment and exploration,” he said.
“The challenge now is to get licenses into the hands of those companies most likely to use them. The message is getting across to many countries, particularly in North America, who appreciate the remaining potential of the U.K.CS,” Wilson said.
License awards are scheduled for August. Exploration incentives new The promote license, available for the first time in early February, offers the licensee the opportunity to assess the prospectivity of the licensed acreage for an initial two-year period without the stringent entry checks that are part of a traditional license.
During the assessment period, up to a maximum of two years, the license rental fee is 10 percent of the traditional license’s fee. Special circumstances can extend the period as much as two more years.
| 