Licensing rounds

We hold offshore and onshore licensing rounds, inviting applications from companies and making awards to those bids that promise to ensure economic recovery of the UK’s oil and gas resources, whilst supporting the drive to net zero carbon by 2050.

The Review of Future Licensing of Offshore Oil and Gas

In September 2020 the Government carried out a review of the policy on licensing for North Sea oil and gas to ensure it was compatible with climate change objectives.

Noting the ongoing role of oil and gas on our path to net zero, the Government will introduce a new Climate Compatibility Checkpoint on future oil and gas licensing rounds to ensure they are compatible with wider climate objectives, including net-zero emissions by 2050. This checkpoint will use the latest evidence of the time, looking at the UK’s demand for oil and gas, the sector’s projected production levels, the increasing prevalence of clean technologies such as offshore wind and carbon capture, and the sector’s continued progress against its ambitious emissions reduction targets. The Department for Business, Energy and Industrial Strategy (BEIS) has stated that design of this checkpoint will be completed by the end of 2021.

In parallel, the Offshore Petroleum Regulator for Environment and Decommissioning is conducting a new Offshore Energy Strategic Environmental Assessment which will underpin future licensing rounds. The OGA plans to run another licensing round for oil and gas exploration on the completion of this assessment.

32nd Offshore Licensing Round

On 11th July 2019, the 32nd UK Offshore Licensing Round officially opened and we invited applications for licences.  Applications were accepted up to 14.00 on the 12th November 2019  through the LARRY system on the Energy Portal. 

On 3 September 2020, the Oil and Gas Authority (OGA) offered for award 113 licence areas over 260 blocks or part-blocks to 65 companies in the 32nd Offshore Licensing Round.

The round offered blocks in mature, producing areas close to existing infrastructure, under the flexible terms of the Innovate Licence. This enables applicants to define a licence duration and phasing that will allow them to execute the optimal work programme. The majority of the licences will enter the Initial Term (Phase A or Phase B exploration stage), and 16 of the awards are for licences that will proceed straight to Second Term, either for potential developments, or re-developments of fields where production had ceased and the acreage had been relinquished.

Rhum Area Out of Round

On the 1^st August 2019, the Oil and Gas Authority (OGA) has launched a restricted Out of Round offer for two blocks 3/24c & 3/29c, around the Northern North Sea Rhum Field.

Applications are to be made via the LARRY system on the Energy Portal and will follow the normal Licensing Round Application process. Please see attached Guidelines (below).

The offer is open for 90 days and will close at 2:00pm on 30^th October 2019. Decisions are expected to be made in Q4 2019.

31^st Supplementary Offshore Licensing Round - Greater Buchan Area Plan

The Oil and Gas Authority (OGA) has offered for award 4 licences to 3 companies in the 2019 31st Supplementary Offshore Licensing Round, which closed for applications in May 2019.

Eleven blocks were originally on offer in this Supplementary Round which was focussed in the Greater Buchan Area of the UK Continental Shelf (UKCS).

This was the first time the OGA has linked a licence round offer with an Area Plan and the application process included the requirement for applicants to demonstrate their wider area plan development concepts and to seek to collaborate with other area licensees and applicants.

The round offered blocks under flexible terms, enabling applicants to define a licence duration and phasing that will allow them to execute the optimal MER UK work programme.

In all, 4 applications covering 5 blocks were received and the OGA is now ready to make offers of award in respect of 4 licences covering the 5 blocks.

Two of the awards are for work programmes that will proceed straight to Second Term, either for potential developments, or re-developments of fields where production had ceased and the acreage had been relinquished. The remainder of the licences will enter the Initial Term (exploration stage).

Scott Robertson, CNS Area manager, said: “From bringing together interested parties at an early stage to releasing extensive digital data in advance of the licence round, the OGA sought to facilitate a common understanding and industry collaboration. The resulting commendable level of engagement between operators and high quality applications enabled us to make awards confident that the right assets are going to be in the right hands to deliver the optimal MER development of the Greater Buchan area. We look forward to working with the awardees as they deliver on their work programs and commitments and to exploit the opportunities to re-purpose and sustain existing infrastructure.”

The OGA fully supports the transition to a low carbon economy. Government forecasts show that oil and gas will remain an important part of our energy mix for the foreseeable future, and maximising economic recovery from the UKCS is therefore vital to meet our energy demands and reduce reliance on imports.

The 31^st Offshore Licensing Round

On 10^th July 2018, we invited applications for licences in the 31^st Offshore Licensing Round. Applications were accepted up to 14.00 on the 7^th November 2018 through the LARRY system on the Energy Portal. 

The Round attracted 36 applications covering 164 blocks in frontier areas of the UK Continental Shelf (UKCS).  For full details on the applications received please see the related Press Release.

On 4 June 2019, the Oil and Gas Authority offered for award 37 licence areas over 141 blocks or part-blocks to 30 companies in the 31^st Offshore Licensing Round.

These successful awards act as a strong platform for future exploration and production in frontier areas of the UK Continental Shelf (UKCS) in the Faroe-Shetland Basin, Moray Firth, East Irish Sea, East Shetland Platform, Mid North Sea High and English Channel.

A number of proposed new work programmes have been secured in this round, including new shoot seismic acquisition, with two licences progressing straight to field development planning (second term licences).

Overall, the awards have been offered to a broad spectrum of companies; with super-majors expanding their footprint and new entrant companies investing for the first time.

30^th Offshore Licensing Round

On 25 July 2017, we invited applications for licences in the 30th Offshore Licensing Round.  The round closed for applications on 21 November 2017. On 23 May 2018 we announced the offer of awards in the 30th Offshore Licensing Round.

29^th Offshore Licensing Round

On 27 July 2016, we invited applications for licences in the 29^th Offshore Licensing Round. The Round closed on 26 October 2016. On 23 March 2017 we announced the offer of awards in the 29^th Offshore Licensing Round.

2016 Offshore Supplementary Round

On 6 December 2016, we invited applications for licences in the Offshore 2016 Supplementary Round.  

28^th Offshore Licensing Round

On 6 November 2014, we invited applications for licences in the 28^th Offshore Licensing Round.