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UK Bans New North Sea Exploration, Permits Limited Tie-Back Drilling

The strategy channels limited new output through tie-back certificates, keeping the windfall tax in place to 2030.

Overview

  • New Transitional Energy Certificates will let operators tap small pockets adjacent to existing licensed blocks if linked to current infrastructure and without fresh exploration.
  • The Energy Profits Levy remains to 2030, with the Treasury forecasting £2.7 billion of revenue in 2025–26 despite falling receipts as the basin declines.
  • Independent assessments using NSTA and Rystad data suggest tie-backs could yield roughly tens of millions of barrels of oil equivalent, with one estimate at about 45 million boe.
  • The plan includes a North Sea Jobs Service and up to £20 million for retraining and an expanded skills passport to help workers move into other sectors.
  • Environmental groups hailed the end of new exploration as a milestone, while industry warned the tax and licensing limits will deter investment and cost jobs, and a final decision on Rosebank is expected early next year.