§ The Minister for Energy, E-Commerce and Postal Services (Mr. Stephen Timms)I am pleased to inform the House that I am today inviting applications for petroleum licences over a large number of blocks in the 85WS southern, central and northern North sea and for the area west of the Shetland Islands which will form the 22nd round of offshore petroleum licensing. In parallel to this offshore round I am also inviting applications for the onshore area of the UK. This will be the 12th onshore licensing round.
In deciding which blocks to make available for licensing in the offshore area, I have considered the results of the strategic environmental assessments undertaken by my Department, the most recent on which consultation closed in December 2003. After considering the assessments and the responses to the consultation, I have decided to take a precautionary approach and not offer for licence 23 blocks or part blocks because of their proximity to existing conservation sites as highlighted by the environmental assessments. In addition, 20 blocks will not be offered for licensing in these SEA areas at the request of the Ministry of Defence.
Any licences awarded in the round will contain conditions to protect environmental interests and the interests of other sea users. In addition, activities carried out under the licences will be subject to a range of legislation which is designed to protect the marine environment, including regulations which apply the Environmental Impact Assessment and Habitats directives to offshore oil and gas activities. This will be particularly relevant to certain blocks in Quadrant 217, which contain unusual seabed features.
The licences will also contain provisions to ensure that licensees either undertake exploration work within a relatively short timescale or relinquish the licence at the earliest possible opportunity so that other companies are able to take forward exploration of the area. These requirements support PILOT initiatives to remove barriers to activity on the UKCS.