Wireline Magazine Autumn 2020 Issue 49

potential developments, or re-developments of fields where production had ceased and the acreage had been relinquished. The OGA provided a suite of new data and analyses, prospect and discovery reports, well and seismic data to support this round. Additionally, the creation of the National Data Repository (NDR) in 2019 significantly improved data availability and access. Following recent successful annual licensing rounds, as previously announced, the OGA is taking a temporary pause fromannual licence round activity andwill not run a licence round in what would have been the 2020/21 period. This will allow relinquishments to take place so more coherent areas may be reoffered in future, giving industry time to deliver on work commitments in the existing portfolio of licences. Industry is encouraged to use the pause to acquire data and carry out studies in preparation for the next round. The OGA will engage with industry on the timing and nature of the next offshore licensing round. Speaking in response to the announced review, OGUK Chief Executive Deirdre Michie OBE called for a constructive and open discussion about how the UK will continue to meet its energy needs while delivering consumer affordability and jobs, optimising indigenous energy sources in a way that ensures the UK doesn’t offshore its emissions to other countries. Winter economic update At the end of September, the Chancellor of the Exchequer presented his Winter Economy Plan to Parliament. This replaced the much-anticipated Budget, which was deemed ill-timed given the volatile economic climate in light of the ongoing Coronavirus crisis. Indeed, since then, the pandemic has continued to upturn long planned political and economic events.

Review was expected to lay out public spending priorities over the next three years, however, this has now been replaced with a one-year spending review which will take place on 25 November 2020. As a result of the new lockdown and the wider implications on the economy, the Furlough scheme will now remain open until December. Businesses will have flexibility to bring furloughed employees back to work on a part-time basis or furlough them full-time, and will only be asked to cover National Insurance and employer pension contributions which, for the average claim, accounts for just 5% of total employment costs. The OGUK Business Outlook Report published earlier this year warned that up to 30,000 jobs could be lost in the sector as it faces a triple whammy of low oil and gas prices alongside the operational impact of the coronavirus pandemic. OGUK encourages governments to keep a focus on the prize of a green recovery, where the essential expertise of the oil and gas industry could mean fresh opportunities for the fragile supply chain. September 2020 marked the one-year anniversary of the launch of Roadmap 2035: A Blueprint for Net Zero. This blueprint highlights the role the sector can play to help the UK achieve the energy transition that is critical to a fully decarbonised economy. With support from sponsor Deloitte, OGUK marked the occasion with a webinar in which industry leaders could reflect on progress to date against the actions and commitments asset out in the Blueprint. Participants included OGUK CEO Deirdre Michie OBE, Aker Solutions’ Sian Lloyd Rees, Wood’s Dave Stewart, Steve Phimister of Shell UK, CDA’s Dan Brown, and the OGA’S Roadmap 2035: One Year On

“Numbers have risen steadily since then as industry has adopted a robust swiss cheese barrier model, with a range of preventative measures in place both prior to mobilisation and whilst offshore, which has helped secure more jobs and increase operations in the immediate term. “Despite this, we continue to see some very worrying signs for employment in the sector, with the uptake of furlough and continued suppression of global energy demand impacting our industry like many others in the wider economy. “As our report shows, the recruitment and retention of diverse and talented people will be essential as we work to support UK energy needs both now, and in a lower carbon context. A North Sea Transition Deal, supported by the UK and Scottish governments, can act as a catalyst for this future, and in so doing will provide certainty on the sustainability for the sector in difficult times.” 65 companies awarded areas in 32nd Licensing Round The OGA has offered 113 licence areas for award over 260 blocks or part-blocks to 65 companies in the 32nd Offshore Licensing Round. Announced on 3 September, the round offered blocks in mature, producing areas close to existing infrastructure, under the flexible terms of the Innovate Licence. This enables applicants to define a licence duration and phasing that will allow them to execute the optimal work programme. The majority of the licences will enter the Initial Term (Phase A or Phase B exploration stage), and 16 of the awards are for licences that will proceed straight to Second Term, either for Read the report on the OGUK website.

The Chancellor’s Comprehensive Spending

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