The Oil & Gas Authority (OGA) – the UK’s oil and gas regulator – has announced that 159 onshore blocks under the 14th Onshore Oil and Gas Licensing Round are being formally offered to successful applicants.
The blocks will be incorporated into 93 onshore licences – 61 of which relate to shale gas exploration.
Ineos Upstream, Warwick Energy, Osprey Petroleum Petroleum, OK Energy (Onshore) Ltd, Cuadrilla and Perneco are among the successful operators.
A Petroleum Exploration and Development Licence (PEDL) does not itself give any direct permission for operations to begin. A PEDL grants the licensee exclusivity over an area of land for onshore hydrocarbon exploration, appraisal and extraction. The exclusivity applies to both conventional and unconventional operations.
Around 75% of the 159 blocks being offered by the Government relate to unconventional shale oil or gas.
The OGA said the offer of PEDLs follows a detailed environmental assessment of the proposed blocks under the Conservation of Habitats and Species Regulations 2010, which was subject to public consultation. The OGA has also separately published its updated Habitats assessment report, and its response to the consultation.
Following the assessment, and the conclusion of the consultation process, the OGA said it was satisfied that the approval of the 14th licensing round, and the offer and eventual award of the individual PEDLs, will not have an adverse effect on the integrity of any protected European site.”
OGA Chief Executive Andy Samuel said:
“I am pleased that the 14th Onshore Round attracted strong interest and a high quality of proposed work programmes. This round enables a significant amount of the UK’s shale prospects to be taken forward to be explored and tested.
“Upon acceptance of these offers, applicants will be issued with licences and will be able to begin planning their future strategies for exploration activities. These will be subject to further local planning, safety, environmental and other authorisations.”
Energy Minister Andrea Leadsom added:
“Alongside conventional drilling sites, we need to get shale gas moving. As the Task Force for Shale Gas report found earlier this week, with the right standards in place fracking can take place safely. Now is the time to press ahead and get exploration underway so that we can determine how much shale gas there is and how much we can use.”
Following discussion with prospective licensees, and in accordance with the new devolution settlements set out in the Scotland Bill currently before Parliament and the soon to be introduced Wales Bill, the UK Government has decided that no new Petroleum Exploration and Development Licences will be awarded in Scotland or Wales including as part of the 14th Round.
The announcement follows Wednesday's vote by MPs in the House of Commons to allow fracking for shale gas 1,200m below national parks and other protected sites.