The UK confirmed new licences this morning allowing oil and gas companies to explore in parts of the North Sea previously allocated for offshore wind power.

The industry regulator, the North Sea Transition Authority (NSTA), offered 31 licences in the most recent phase of the 33^rd round.

It said a new clause allowing oil and gas licences to overlap with wind leases would support co-existence of the two industries:

“The granting of an exploration licence does not eliminate the use of that area for offshore wind, and we wholly support the use of offshore wind as a means of power generation.

“The NSTA has worked closely to manage any potential overlaps and for the first time have agreed a new co-location clause which means that for any activity to take place oil and gas operators will have to come to an agreement with wind lease holder on how to proceed before further permission for activity is granted.”

Today’s announcement brings the number of 33rd licence round offers to 82, involving 50 companies. 27 were announced in October 2023 and 24 in January 2024.

The NSTA estimates the licences offered in the round would be expected to add estimated 600 mmboe (million barrels of oil equivalent per day) up to 2060.

The awards have been criticised by climate campaigners and commentators.

The former reviewer of the UK’s net zero strategy, Chris Skidmore, described them as a “deeply irresponsible and divisive move” with a general election due later this year.

It went against all the advice from the International Energy Agency or the UN and would “further set back the UK’s climate reputation”, he said:

“Instead of wind powering new oil, the investment should instead be in more wind and renewables. More fossil fuels will only create stranded assets and stranded jobs at a time when demand for oil and gas is falling.”

Mr Skidmore added:

“This is a political and cynical stunt that will only backfire.

“We need to stop playing politics with climate and people’s future, and take a grownup position on seeking to find consensus for an end date to new oil and gas.”

• Europa Oil & Gas said in a statement today that it had decided not to accept a proposal from NSTA of a partnership with another company for a 33rd round licence.
• NSTA also offers onshore licences but has said there are no plans for an onshore round. The last onshore licences were issued in 2015.

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