- NSTA said 76 companies submitted 115 bids across 258 blocks, compared with 104 bids in 2019
- Focus is fields near existing infrastructure, meaning developers can get to production quickly
Oil and gas companies have committed to investing in North Sea oil exploration squashing fears the energy windfall tax would halt new investment.
The North Sea Transition Authority (NSTA), which hands out UK offshore oil and gas permits, said its latest funding round matched the previous one from 2019.
Exploration in the North Sea had plummeted, with only six wells drilled in 2022, compared with 29 in 2019. The last two licensing rounds produced "minimal success thus far" in terms of adding reserves, according to industry body Offshore Energies UK.
The last round also focused on blocks in "mature, producing areas close to existing infrastructure", so the quick route to production plan did not ramp up North Sea production previously.
The NSTA said it hoped the upcoming licence awards would boost oil production faster than in recent history. It said: "Internal analysis...showed the average time between the dates of recent discoveries and first production has been close to five years. It is hoped since [the latest bids] consist of existing discoveries, the priority cluster areas can go into production in an even shorter time."
David Moseley, vice president for North Sea research at analytics firm Welligence, said: "Interest in the 33rd round was high, considering recent uncertainties, including instability in the fiscal system, the levy introduction and the fact companies remain cautious with regard to exploration.
"However, for many larger companies it was a chance to replenish the exploration hopper after close to three years without a round."
The regulator has not revealed the detail of the bids, or which companies have put in applications. It will award the exploration licences by mid-year. NSTA head of exploration Nick Richardson said the 115 bids was a "strong response from the industry".
Moseley said the real impact would only be revealed when companies published spending plans. "Financial commitments, such as drilling bids, are expected to be low – so while interest has been high, time will tell how much absolute investment the round will generate," he added.
The largest independent North Sea producer, Harbour Energy (HBR), has already said it would not submit any bids because of the windfall tax. The government raised the energy profits levy to 35 per cent in the Autumn Statement, increasing the total tax take from energy companies to 75 per cent.
