Decision on North Sea licensing expected by end of year
The UK government is planning to grant licences for North Sea tiebacks in a softening of its original plans to ban new licences for oil and gas drilling, according to a report in The Times.
Ed Miliband, the UK Energy Secretary, took office last year on a mandate to ban new exploration licences and tighten the fiscal regime for oil and gas companies in a drive to turn the UK into a clean energy superpower.
But in response to growing pressure from trade unions, concerned at the thousands of North Sea jobs at risk amid current policy, and the surging popularity of new right wing party Reform, Miliband is planning to temper his plans, The Times reported on Sunday.
The UK government has consulted on its election manifesto and is expected to announce the results of its licensing and fiscal decisions during the autumn Budget scheduled for 26 November.
Instead of an outright ban on new exploration, North Sea operators will be able to apply for licensing in blocks near to existing infrastructure, a decision that trade association Offshore Energies UK says could help unlock up to 7.3 billion barrels of oil equivalent, The Times reported.
A spokesperson for the Department for Energy Security & Net Zero said The Times’ article was “pure speculation”.
“The consultation response will set out how the government intends to meet its manifesto commitments of ensuring no new licences to explore new fields and maintaining existing fields for their lifetime,” the spokesperson said.
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