§ Mr. David ShawTo ask the Secretary of State for Energy whether he is able to announce the results of the 12th and frontier offshore licensing rounds.
§ Mr. WakehamI am now able to inform the House about the offshore oil and gas licences that I propose to award in these two separate rounds.
In the 12th round I received 115 applications for 81 of the 120 blocks on offer; 80 companies were involved. Following careful examination of these applications by my Department, I am now prepared to offer licences for 74 blocks.
The number of applications received was satisfying in itself. In addition, the proportion of blocks applied for was the highest for 10 years and showed that the oil and gas industry maintains its very strong interest in obtaining licences on the United Kingdom continental shelf. The success of the round was confirmed by the quality of the proposals put to us by the successful applicant companies and the exploration which will flow from these awards. This will help ensure that the UKCS remains a major international oil and gas province well into the next century.
The response to the first separate round of licensing for frontier areas was also very encouraging. I received 13 applications from groups involving 37 companies for six of the 11 tranches of blocks on offer. I am pleased to be able to offer licences for all these tranches. This will give a fresh impetus to exploration in these areas.
The success of these two rounds demonstrates that the present form of licensing continues to offer the most effective means of releasing offshore acreage to the industry for exploration. The frontier round result especially also highlights the responsiveness of the licensing system to the particular circumstances of different areas. Both rounds demonstrate the importance my Department attaches to listening to the views of the oil and gas industry.
For licences awarded in both rounds, special conditions will apply wherever appropriate to ensure that operations are carried out with due regard to the environment and to fishing, navigation, defence and other interests. These conditions are tailored specifically to the particular circumstances of individual blocks and were agreed with the organisations consulted during preparations for the licensing rounds.
A copy of the list of awards has been placed in the Libraries of both Houses.