By Oonagh Werngren, Oil & Gas UK's operations director said:
"Oil & Gas UK welcomes the Energy Minister's announcement of the 28th offshore oil and gas licensing round.
Exploration in the North Sea has been challenged in recent years in both the number of exploration wells being drilled and their success rates. Recent data from the Department for Energy and Climate Change (DECC) demonstrates that in 2011, the UK continental shelf (UKCS) experienced a 50 per cent drop in the number of exploration wells drilled, a number which has so far yet to recover. Only 15 wells were drilled in 2013 and less than 100 million boe were discovered in the last two years. Explorers cite access to rigs and equity capital as being the major contributing factors.
Today's announcement of the 28th offshore oil and gas licensing round will, we hope, encourage new applicants as well as established companies to explore the basin but industry needs to work collaboratively with HM Treasury and DECC in a tripartite arrangement as outlined by Sir Ian Wood's recommendations from his Interim Report. We believe this approach ultimately holds the key to the future success of the North Sea."
Ends.
Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its growing membership, which comprises oil and gas producers and contractor companies, now numbers more than 420.lackland@oilandgasuk.co.uk.
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