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The Markets
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Oil & Gas

UK government is reportedly mulling a change to North Sea stance

UK energy secretary Ed Miliband is reportedly examining ways to allow further oil and gas drilling in the North Sea despite Labour’s manifesto pledge to block new licences.

The government is said to be preparing a strategy that would seek to balance economic returns from existing fields with commitments to phase out new exploration, according to a Guardian report.

Proposals under consideration include bespoke permits for previously abandoned fields and tie-backs that would let operators expand from existing sites.

Officials have been in talks with industry and academics, including Aberdeen University’s Professor John Underhill, whose recommendations focus on reusing critical infrastructure and banning routine gas flaring, the report added.

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