The UK government has introduced legislation that would end new oil and gas exploration licences in the North Sea while creating a mechanism to support continued production from existing offshore developments.
The Energy Independence Bill would remove the North Sea Transition Authority’s power to issue new licences for exploring previously unlicensed oil and gas fields.
However, the legislation introduces Transitional Energy Certificates allowing companies to access additional resources in and around existing fields, including discoveries that can be developed through tiebacks to established offshore infrastructure.
According to the government, the mechanism could unlock approximately 60m barrels of additional oil while supporting hundreds of jobs in the offshore industry.
The proposal forms part of the government’s North Sea Future Plan, which seeks to manage declining domestic production while supporting investment in existing infrastructure and the transition towards renewable energy.
Government figures indicate that UK oil and gas production in 2025 was approximately 75% below its historical peaks. Ministers maintain that new exploration licensing would not reverse the basin’s long-term decline.
The proposals have nevertheless drawn concerns from industry representatives. Offshore Energies UK chief executive David Whitehouse warned that energy affordability must be accompanied by security of supply, arguing that Britain should maximise domestic oil and gas production while developing renewable resources.
The industry body noted that Britain imports more than 40% of its energy requirements, leaving consumers exposed to international market volatility.
The proposed licensing restrictions will now proceed through the parliamentary process. Existing offshore licences would remain in place, while the precise scope of activities permitted under the new certificate system will depend on the legislation and its implementation.
Source: splash247.com