As the UK regulator has decided to prolong a license in alignment with another one in the area to pave the way for an integrated development plan, Aberdeen-based full-cycle energy business NEO NEXT+ Energy and its partners, Serica Energy and Jersey Oil & Gas (JOG), are expected to contemplate all available production solutions for a proposed oil project in the North Sea on the UK Continental Shelf (UKCS)
Jersey Oil & Gas has confirmed receipt of approval from the North Sea Transition Authority (NSTA) for an extension to the second term of the P2170 Verbier license as part of aligning the duration with that of the P2498 Buchan Horst (Buchan) license.
The company elaborates that the second term of a UK offshore oil and gas license sets the period in which the licensees are required to obtain a field development plan (FDP) approval for the area to subsequently move into the third term, which covers the development and production phase of activities for the life of a field.
Since the second term of the P2170 license has now been extended by approximately six months, to February 28, 2027, it is aligned with the corresponding duration of the P2498 Buchan license, reflecting the NSTA’s objectives for an integrated area plan, which the joint venture partners have always regarded as requiring a phased development solution led by the initial exploitation of Buchan’s resources.Andrew Benitz, CEO of Jersey Oil & Gas, commented: “We are pleased to receive a licence extension on our existing Verbier licence, which now aligns the timing of both of our GBA licences, as we continue to work on engineering the optimal development solution for the area. As we have always highlighted, there is an exciting opportunity to unlock the resources across the area through the development of a Buchan-led production hub.“We continue to urge the government to work constructively with industry on critical oil and gas development approvals and bring an early end to the Energy Profits Levy, which has unquestionably led to a significant slowdown in investment activity. The extended approval processes for developments that the UK’s regulatory landscape has created presents a complicated backdrop for progressing key projects.”