A further 27 North Sea licence awards were announced today as PM Rishi Sunak’s retreat from the climate goals championed by his predecessors continued.
Shell was awarded the most licences under this part of the 33rd round of North Sea licensing with Norwegian group Equinor, DNO, Aker BP, Ithaca, TotalEnergies and BP also picking up acreage.
Energy Minister Claire Coutinho said the licences were essential in the current uncertain environment and would reduce Britain’s reliance on expensive imports.
“It’s common sense to reduce our reliance on foreign imports and use our own supply – it’s better for our economy, the environment and our energy security.”
Reports recently have suggested unless new North Sea wells come online, the UK will be dependent on imports for 80% of its oil and gas by 2030.
Britain’s North Sea Transition Authority (NSTA), which oversees the licence process, said those in the central and northern North Sea and west of Shetland had been given priority because they were likely to come into production the quickest.
Stuart Payne, NSTA chief executive, said: “Ensuring that the UK has broad options for energy security is at the heart of our work and these licences were awarded in the expectation that the licensees will get down to work immediately.”
In contrast, Labour has promised to end all North Sea exploration if it gets into power while environmental group Greenpeace immediately said it would take legal action.
Philip Evans said: “Greenpeace plans to fight these licences in the courtroom, and we’re mobilising voters to prioritise climate at the next election because frankly, we’re all sick of these backwards-facing policies.”
There was also criticism in the City for the government’s move.
Life insurer Aviva’s chief executive, Amanda Blanc said the UK’s climate goals are “under threat due to a lack of practical and detailed plans”.
In a report criticising Sunak’s recent policies on climate, Aviva said the new drilling licences in the North Sea were a “worrying shift”.
Blanc argued that to support green policies being adopted in UK businesses, they “urgently need a UK, whole economy, transition plan which allows us to compete more effectively with the US Inflation Reduction Act and help the UK become the most climate-ready major economy by 2030.”
As well as the new licences, Sunak has delayed the end of petrol and diesel car sales and oil and gas-fired central heating boilers.
According to NSTA, there are currently 284 offshore fields in production in the UK North Sea and an estimated 5.25bn boe in total projected production to 2050.