Kier Starmer's new government has imposed an immediate ban on the award of any new licences in the North Sea, even those where applications were made before the election and a decision was pending.
New Energy Secretary Ed Miliband overruled the body handing out the licences to make the decision, according to the Telegraph newspaper.
Around 35 licence awards were still pending from the 33rd round of North Sea licensing that was set running by the Tories in government last Autumn.
In total, applications were received for 115 bids to drill across 257 of the North Sea, Irish Sea and East Atlantic, but the North Sea Transition Authority (NSTA), the regulator, was still deliberating on those outstanding.
Before the election, the NSTA said: “Further consideration is being given to a small number of remaining applications and a few more may be offered at a later date.”
According to the report, Miliband instructed the NSTA to halve any further awards.
The new Labour government is expected to outline its plans for oil, gas and green energy at the King’s speech on 17 July.
Deltic Energy, which was recently awarded Licence P2672 west of the West Sole gas field, dropped 4.4% to 10.75p while Serica Energy, another North Sea-focused operator- eased 1.1% to 134p.