U.K. Department of Trade & Industry (DTI) has offered 164 blocks in a number of recent exploration plays around Britain under a 16th offshore licensing round.
Government is keen to maintain momentum for further exploration and development, particularly west of the Shetland Islands.
Blocks offered in the 16th round include relatively underexplored basins such as Cardigan Bay, the East Irish Sea, and the English Channel, as well as the fringes of the more established areas of the North Sea.
DTI also called for nominations from companies for blocks in frontier areas to the far west of Britain to be included in a 17th offshore licensing round.
SHETLAND FOCUS
The area west of the Shetland Islands, which has yielded a number of recent large discoveries and is being readied for its first oil field development, is the focus of the 16th round.
"The largest proportion of the blocks, over 60, are to the west of Shetlands," said Charles Wardle, undersecretary of state for industry and energy, "where I want to encourage companies to build on the impetus of the Foinaven announcement."
On Nov. 7, BP Exploration Operating Co. Ltd received Annex B approval to develop Foinaven field using a floating production/storage/offloading vessel under an $820 million program (OGJ, Nov. 14, Newsletter).
Then DTI said a study had identified 11 development prospects West of Shetlands, with estimated reserves of 3.5 billion bbl of oil. Foinaven is due on stream at yearend 1995.
"This area has the potential for further significant discoveries and to develop into an exciting new oil province," said Wardle. "I intend to 'fast-track' applications for West of Shetland blocks so these can be awarded in advance of other areas and work can start in the summer of 1995."
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