The UK Oil & Gas Authority (OGA) has offered licence awards to 65 companies as part of its 32nd Offshore Licensing Round, although no firm commitments to drill wells were offered this time around.

The OGA confirmed Thursday it had offered to award 113 licence areas over 259 blocks or part-blocks in mature producing areas, close to existing infrastructure.

Companies were able to apply for the Innovate Licence, intorduced several years ago to offer companies flexibility in how they approach the work programmes.

A total of 16 licences will proceed straight to their second term, either for potential developments, or for the re-development of fields where production had ceased and been relinquished by previous operators, the OGA said.

Among the operators offered licences that will move straight to the second term are Equinor, EnQuest, Ithaca Energy, Premier Oil, Wintershall Noordzee, Chrysaor, Corallian Energy, Anasuria Operating Company and Neptune Energy.

The remaining licences will be entered at the Initial Term, Phase A or B exploration stage, according to the OGA.

A full list of the companies to be offered awards in the 32nd Licensing Round, including industry heavyweights like Shell, BP, Total, Apache and Equinor, can be found here.

Most of the licences were award on a drill or drop basis. However, no companies offered firm commitments to drill wells.

Hitting pause

The 32nd Offshore Licensing Round was launched last year and covered 768 blocks or part-blocks in the central North Sea, northern North Sea, southern North Sea and the West of Shetlands, with applications closing in November 2019.

The OGA also reaffirmed on Thursday that it would be taking a break from the normal licensing round schedule, following the success of previous rounds, with no round planned for the 2020-2021 period.

It noted that the pause in licensing would allow for relinquishments to take place so more coherent areas could be re-offered in future, while it also claimed it would give industry time to deliver on work commitments in the existing portfolio of licences.

The OGA urged companies to use the break in licensing to acquire data and carry out studies in preparation for the next round, adding it would engage with industry on the timing and nature of the next offering.

Katy Heidenreich, supply chain and operations director of trade body Oil & Gas UK, said: “At a time when companies face huge pressures it is encouraging that our basin continues to demonstrate its attractiveness to a wide range of companies.

"This is a crucial element in unlocking the new investment that will help continue to meet UK energy needs and sustain jobs across our sector."

Among the smaller companies, one private outfit awarded acreage was Athena Energy, which was granted three licences in the west of Shetland region, adding to acreage awarded previously.

Athena’s technical director Colin Percival said: "Increasing our footprint in the west of Shetlands is a core strategy for Athena Energy and we are very excited by today’s awards.

“These blocks add material value to Athena at low cost and in a geography which remains extremely exciting for nimble independents such as ourselves to build a business."

London-based Painted Wolf Resources, another little known company, picked up seven awards in the southern sector.

Deltic Energy, formerly Cluff Natural Resoruces, was awarded six licences.

Exploration

Shell, BP, Total: OGA reveals full list of winners in latest UK licensing round