§ Mr. Yeoasked the Secretary of State for Energy whether he has any proposals for further offshore production licensing.
§ Mr. Buchanan-Smith[pursuant to his reply, 22 April 1986, c. 118]: The arrangements for the tenth round of offshore petroleum production licensing have now been determined. A text describing the arrangements has been placed today in the Libraries of both Houses. The text, which will be published in the London, Edinburgh and Belfast Gazettes on Friday 25 July, includes a list and map showing the blocks for which applications will be invited. I expect that around 50 to 60 of the 127 blocks on offer will be licensed. All awards will be at the discretion of the Secretary of State.
A mix of blocks from different areas of the United Kingdom continental shelf will be on offer, distributed as follows:
Northern North Sea 24 Moray Firth 36 Central North Sea 23 Mid North Sea High 5 Southern North Sea 26 Rockall Trough 7 Faeroes Trough 6 The closing date for applications will be noon on tuesday 17 February 1987.
The selection of blocks for offer has followed extensive consultations with interested organisations, including fishing and environmental interests. In certain blocks, for example these close to the coast, there will be drilling restrictions or other special requirements to reflect the sensitivity of the areas for fishing, wildlife, defence or navigation.
I will also expect licensees considering development plans for any discoveries near the shore to carry out a study into the implications and impact of the proposed development, in consultation with all interested parties.
A key objective for the tenth round is to consolidate on the ninth round and encourage exploration in areas which merit more intensive examination. We need to maintain continuity on the United Kingdom continental shelf to increase knowledge of our oil and gas reserves and provide potential for developments in the 1990s to replace existing fields when they start declining. I believe that the United Kingdom continental shelf remains one of the most attractive areas in the world for hydrocarbons exploration.
Applicants for licences will be judged against the background of the continuing need for expeditious, 443W thorough and efficient exploration to identify oil and gas resources of the United Kingdom continental shelf, including deep water and other frontier areas.
The terms on which licences will be awarded will be on the same general lines as in ninth round, though rental charges will be indexed against movements in the price of oil.