Over one hundred applications for new offshore oil and gas licences were received in the UK’s most recent bidding round, according to the North Sea Transition Authority (NSTA).
Some 76 different companies submitted 115 bids for North Sea projects, up from 104 applications in the last round in 2019, including from major players Shell PLC (LSE:SHEL, NYSE:SHEL) and BP PLC (LSE:BP.).
Production could start in the next 18 months in four priority areas of the North Sea which are known to have oil and gas deposits, said the NSTA.
This will "provide a significant boost to the UK’s energy security,” it added.
Oil and gas account for roughly three-quarters of the UK’s energy supply outlined the authority, which suggested the UK’s reliance on fossil fuels was better sourced from the North Sea, rather than imported liquified natural gas, which carries a larger carbon footprint.
“We will now be working hard to analyse the applications with a view to awarding the first licences from the second quarter of 2023,” added NSTA exploration head Nick Richardson.
Firms, including Harbour Energy PLC (LSE:HBR), Exxon Mobil Corporation (NYSE:XOM) and Shell previously warned that North Sea projects could see reduced investment given the 35% windfall, and 75% total tax, on oil and gas.
Shell and BP both confirmed their involvement in the round through spokespeople.
Calls from across the political parties were made in early January for oil and gas licensing rounds to be stopped, alongside a ban on gas flaring.
A cross-party group of MPs from the Environmental Audit Committee urged the government to follow Denmark, which banned new oil and gas licences in 2020 and will phase out production by 2050.
The NSTA did address climate concerns in its announcement, however, outlining production emissions fell by a fifth between 2018 and 2021, while the sector is on track to meet reduction targets of 25% by 2027.