2012 North Sea Licensing Round - Breaking All Previous Records

The latest North Sea licensing round for oil and gas was launched on 1 February 2012 by the Secretary of State for Energy and Climate Change and closed for applications on 1 May 2012. The 27th Licensing Round has broken all previous records for the number of applications received by the Government with 224 applications submitted covering the 418 blocks of the United Kingdom Continental Shelf. This is the largest number since offshore licensing began in 1964 with 37 more applications than the previous highest total in 2011. 

This illustrates an increasing interest in the exploration, development and production opportunities in North Sea oil and gas. One reason for the interest may be the £3 billion field allowance introduced by the Government in the Budget Statement in March, designed to stimulate investment in the North Sea.  Combined with this is the sustained high oil price which makes the development of smaller, more marginal fields potentially economic.