Statoil says it is pleased with its acreage awards in the UK’s 29th licensing round as the Norwegian operator gets down to work to integrate three new well commitments into a drilling schedule that already features three probes for later this year.

Statoil was awarded six UK licences, five as operator and one as a non-operating partner, in the round, which was announced by the Oil & Gas Authority (OGA) on Thursday.

"We are very pleased with these awards which strengthen our UK continental shelf portfolio significantly,” said Jez Averty, senior vice president for exploration in Norway and the UK.

“Statoil has secured both drill-ready prospects and frontier acreage, and the diversity of the awards is testament to Statoil's belief in both the potential of the UK and that it remains an attractive place to explore."

Statoil’s five operated licences are located in the northern North Sea where, in partnership with UK supermajor BP, it has committed to drill three firm exploration wells, the only company to do so in the round

Its sixth licence, as a non-operating partner with US supermajor ExxonMobil, is located west of Scotland.

"These awards are a result of a strategic decision by Statoil to explore in prolific but mature basins, combined with an emphasis on comprehensive regional work and investments in the most modern seismic datasets,” said Averty.

“In addition, we continue to diversify the UK portfolio by exploring in the true frontier areas such as the Rockall basin.”

Statoil is already gearing up to drill three exploration wells this summer on acreage awarded earlier.

First up is expected to be the Verbier prospect in UK Licence P2170, containing blocks 20/5b and 21/1d in the Buchan Graben in the Outer Moray Firth.

Another potential play opener is Jock Scott, a prospect located east of Shetland, in which BP acquired a 25% non-operating interest last year.

A third well, an unrisked prospect close to the Mariner heavy oil field that was identified through new seismic coverage, is also on the schedule, Upstream understands.

The three new well commitments from this week’s round will be integrated into future drilling plans, the company said.

BP was awarded seven licences in this week’s round, one as operator and six as partner.

The BP-operated licence is located in the Magnus basin where it will be exploring with Bayerngas Europe.

As well as the five non-operated licences with Statoil, BP also took a non-operated licence in partnership with operator Shell, located close to the Schiehallion field.

Mark Thomas, BP North Sea Regional president, said: “We made a strong bid in the 29th round so are delighted to have been awarded everything we applied for – 25 blocks, including three firm wells. This represents BP’s largest acreage award since the late 1990s.”

Thomas added: “The North Sea is a growth region for BP as we seek to double our production to 200,000 barrels a day by 2020. In 2017, along with partners, we are drilling up to six exploration wells in addition to drilling approximately 50 development wells over the next three to four years.

“As we prepare for important new production from our Quad 204 and Clair Ridge projects, these licence awards further demonstrate our commitment to this region.”

In November, BP acquired interests in the Nexen-operated Craster prospect, also planned to be drilled this year, as well as the Statoil’s Jock Scott.

ExxonMobil was awarded a licence covering 14 whole or partial blocks in the Rockall area of the UK continental shelf.

A spokesman said on Friday: “We believe that the area merits further seismic studies. ExxonMobil is operator and will work with Statoil to progress joint exploration activities related to these blocks.”

Shell also picked up one 100%-owned licence, again near Schiehallion.

Steve Phimister, Shell’s vice president upstream for UK& Ireland, said: “This is a positive development which enhances Shell’s strategic exploration activity in one of our heartland areas, helping us to realise our ambition to become the most competitive and resilient operator in the UKCS.”

Several smaller companies were also award acreage in the round, which focused on frontier and under-explored areas.

One of those, Azinor Catalyst, backed by private equity group Seacrest Capital, was awarded two operated licences comprising 10 blocks in the Outer Moray Firth that are contiguous with acreage Azinor’s already holds containing the Partridge prospect, set be to drilled this year.

Azinor technical director Henry Morris said: “We are very pleased to have been awarded 10 highly prospective blocks in the latest UKCS licencing round.

“Most importantly, we have been awarded the blocks which cover the wider Partridge play, known as ‘the Birds’.

“This further cements our position over some of the most exciting Lower Cretaceous prospects in the region.

“This area has significant underexplored potential, it is astounding that an area in such close proximity to a 600 million-barrel field — the Claymore field — has only just had 3D seismic coverage.”

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Statoil sharpening UK drillbit after round awards