Tuesday 15 September 1998

UKOOA Responds To Government Announcement On 18th Offshore Licensing Round

James May, Director-General of UK Offshore Operators Association, the representative body for the UK offshore oil and gas industry, said:

It is not surprising that the 18th Offshore Licensing Round should attract interest from companies wishing to expand or establish their presence on the UK Continental Shelf (UKCS), given the nature of the blocks on offer.

The 18th Offshore Licensing Round differs from previous rounds in that applications were invited for all open acreage in the four mature areas of the UK Continental Shelf (Northern, Southern and Central North Sea, as well as the Eastern Irish Sea).

As most of the blocks are in well understood territory with many close to existing offshore infrastructure, the cost implications of taking on additional acreage are relatively low, especially when compared with frontier licensing rounds such as the 16th or 17th.

New technology has enabled the re-appraisal of existing data and fields, allowing the possibility of previously uneconomic discoveries to be brought on stream.

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18th Licensing Round Response/2

It would only seem natural, therefore, for Groups currently operating on the UKCS to capitalise on these factors to acquire licence interests in adjacent blocks and for newcomers to seek a presence in a maturing province.

Note to Editors

1. UK Offshore Operators Association (UKOOA) is the representative organisation for the UK Offshore oil and gas industry. Its 35 members are companies licensed by Government to explore for and produce oil and gas in UK waters.

2. The 18th Offshore Round of Petroleum Licensing was announced on 9 June 1998. Applications were submitted on 10 and 11 September 1998.

3. The 18th Round invited applications for all open acreage in the four mature areas of the UKCS (Northern, Southern and Central North Sea, as well as the Eastern Irish Sea). Certain blocks were excluded on environmental grounds or to protect other sea users interests.

For more information, please call 020 7802 2400.