§ Mr. Gristasked the Secretary of State for Energy when he expects to invite applications for further offshore production licences.
§ Mr. Peter WalkerMy proposals for a ninth round of offshore petroleum licensing are as follows.
The round will offer a mix of frontier and mature area territory similar to that included in the eighth round. A primary objective will be to open up those frontier areas in which little or no exploration drilling has yet taken place, including some territory in water depths in excess of 200 metres, with the aim of discovering more about potential oil and gas reserves on the United Kingdom continental shelf.
My aim is to licence up to 80 blocks. The blocks on offer will be spread across the following:
and (iv), I shall take account of the extent to which companies also show willingness to explore in blocks in (i) and (ii).
There will be two other similarities to the arrangements for the eighth round. First, successful licensees will be required to give an undertaking, on the lines of that attached to eighth round licences, to allow BNOC an 217W option to acquire up to 51 per cent. of any petroleum produced. Second, BGC will again be expected to limit any applications to areas of gas prospectivity.
The formal invitation to apply will follow in a few months' time. This will include full details of the blocks to be offered, together with the terms and criteria which will apply.
I expect the closing date for the round to be early in 1985. Over the coming weeks I shall be discussing my detailed proposals with those involved. Views or comments from interested parties on the plans I have outlined will be welcome, particularly with reference to areas where it is considered special care and attention in the conduct of development and exploration may be needed for environmental fishing or other interests.