Shell PLC (LSE:SHEL, NYSE:SHEL) and INEOS are among 19 companies to have been awarded new licences to drill for oil and gas in the North Sea
A new wave of 31 North Sea licences were awarded on Friday, marking the third and final set offered under the UK’s 33rd offshore round.
These covered 88 blocks across the southern North Sea, central North Sea and east Irish Sea.
Shell was the only oil major to be awarded blocks in the round and will partner with ONE-Dyas on two licences spanning six blocks in the southern North Sea.
Finder Energy and Hartshead Resources gained two of the largest awards, representing 12 blocks and 10 blocks for each respectively.
Horizon Energy Partners, Neptune, Perenco UK, and INEOS UK SNS were also licence recipients.
According to regulator the North Sea Transition Authority (NSTA), the new licences will collectively add 600 million barrels of oil equivalent (mmboe) up to 2060.
The latest allocation comes after 27 licences were awarded in the first tranche of the 33rd round in October before 24 were granted in January.
Critics argued some of the blocks offered up clashed with areas earmarked for offshore wind.
“Whilst we respect that the North Sea is a shared space [...] the government should be crystal clear that their priority is renewables over oil and gas,” RenewableUK boss Dan McGrail said.
The NSTA responded that wind turbines could still be installed in these areas, noting “oil and gas operators will have to come to an agreement with wind lease holder[s] on how to proceed”.