Offshore Licensing (Hansard, 5 March 1992)

§ Mr. Moynihan

Following the very successful 12th and frontier rounds announced two years ago, I am today announcing the 14th round of offshore licensing. Acreage in the round will be announced in three stages.

Acreage announced today comprises all remaining unlicensed acreage in the main mature areas of the northern, central and southern North sea which can be released. Any finds in these areas will back up existing production plans.

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A second announcement, at the end of July, will cover acreage which is more speculative, either because the economic uncertainties are greater or because the areas concerned may pose greater operating problems. This category principally contains acreage on the margins of the main mature areas and acreage outside the main areas but in and around other areas which are currently licensed.

The third announcement, at the end of November, will cover true frontier acreage, where it will take long periods to prove up any finds and establish the economics for an infrastructure.

Taken together the three categories of acreage provide the basis of a continuing strategy for replacing United Kingdom continental shelf reserves, with the aim of ensuring that the United Kingdom continental shelf remains a major oil province for at least another 25 years.

As in previous rounds, it will be necessary in the case of many blocks to indicate any special features which ought to be taken into account by the operator in respect of activity under the licence. These features will reflect the concerns of defence, fishing, environmental, navigational and other interests, and will be made available by my Department as they are agreed with other Government Departments. Applicants will for the first time be required to submit a statement detailing their policy towards the environment.

I will tomorrow publish in the London, Edinburgh and Belfast Gazettes a formal announcement giving the detailed financial terms for the first category of acreage offered, the format of applications, the information required and the basis on which awards will be made. Applications for the first and second categories of acreage will be returnable by midday 16 December 1992. Applications for the third category of acreage will be returnable on 9 March 1993. I shall place in the Libraries of both Houses copies of this formal announcement.