Spinning the bit: the UK hopes the offerings in the 26th round will boost exploration
UK hopes rise as bid offerings unveiled
The UK put a record 2818 licences up for grabs in the country's 26th round today, as industry hopes rose on expectations that Chancellor Alistair Darling will go public with incentives aimed at boosting the upstream sector later in the day.
Energy & Climate Change Minister Lord Hunt made the announcement during a visit to a fabrication yard in Fife, Scotland, this morning.
The round includes acreage in all areas of the UK offshore, including the much-touted West of Shetland frontier play, Cardigan Bay off Wales, and tracts in the English Channel and the UK's westerly approach waters off Cornwall.
The blocks on offer also include a number relinquished under the fallow initiative.
Speaking this morning, Lord Hunt said: "This record-breaking 26th round includes areas of the continental shelf not as yet explored, and will provide a new boost to activity."
The Department of Energy & Climate Change (DECC) has, as earlier reported in Upstream, introduced a new frontier licence for the West of Shetland with an initial nine-year term, compared with a six-year term for standard frontier licences.
Meanwhile, Darling is widely expected to unveil new tax measures aimed at increasing investment later this afternoon.
Industry insiders expect the treasury package to benefit players in the West of Shetland.
This round tops the 25th round, which saw 2297 blocks and part-blocks put up for bid. As a result of the round, the government awarded 171 licences across 257 blocks.
Estimates indicate there may be as much as 20 billion barrels of oil still untapped in the UK's offshore play.
Bids are due by 28 April, with licence awards expected two to three months after that.
Full details of the 26th round are available here.