Wednesday 20 February 2008

Oil & Gas UK Welcomes Announcement of 25th Offshore Oil and Gas Licensing Round

Oil & Gas UK, the leading representative organisation for the UK's offshore oil and gas industry, today (20 February, 2008) welcomed BERR's announcement of the 25th Offshore Oil and Gas Licensing Round.

Malcolm Webb, Oil & Gas UK's chief executive, said: "The launch of the 25^th Licensing Round provides a welcome return to the regular, annual process of offering licences for oil and gas exploration on the UK continental shelf (UKCS) and shows a substantive increase in areas being offered at this time. Continuity in the offshore licensing process is imperative for the long-term health of the North Sea and its ability to continue attracting interest and investment.

"We are particularly pleased that BERR has brought back into this licensing round the 72 blocks that had been relinquished having been classified as fallow in 2007. Nearly a third of all exploration and appraisal drilling over the last year was on acreage that had passed through the Fallow and Promote initiatives, which highlights the benefits to be gained from Government working closely with industry in encouraging maximum recovery of the UK's oil and gas reserves."

Since the beginning of oil and gas production on the UKCS, 37 billion barrels have been extracted and it is estimated that there are up to 25 billion barrels of oil and gas still to recover. The 25^th Round, which again includes the innovative Frontier and Promote licences alongside the traditional licence, provides a wide range of opportunities for companies to explore for, find and develop the UK's oil and gas resources.

Malcolm Webb added: "In securing a sustainable future for the UK's oil and gas industry and all its associated benefits, the industry and Government must continue working together to ensure that any oil and gas discoveries resulting from the 25^th Round can compete for investment and be developed into producing fields."

Ends

 

Notes to Editors

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its members are licensed by the Government to explore for and produce oil and gas in UK waters and those who form any part of the industry's supply chain. It has 67 members.

 

Sally Fraser                             

Oil & Gas UK Media Relations                   

2nd Floor                                                       

232-242 Vauxhall Bridge Road      

London SW1V 1AU             

                       

Tel:     020 7802 2404/2400

Fax:    020 7802 2401

Email: sfraser@oilandgasuk.co.uk

Pager:07659 183 999

http://www.oilandgasuk.co.uk