In very simple terms, an oil and gas licence is permit for a company to explore and potentially extract oil and gas from a defined area of land either onshore or offshore.Exploration - this licence allows the holder to explore a specific area for fossil fuels but not produce them. Exploration licences are issued less often and are usually wanted by companies that wish to conduct seismic surveys and then sell information onto other firms.
There is no set time for when licensing rounds occur - it can depend on various factors such as current permits ending or new scientific information. In 2022, production was less than 80 Mtoe and is forecast to continue to decline in the coming years, largely to the North Sea being a "mature" site and supplies dwindling.
The government is now offering 100 or so new licences in a bid to curb that trend, arguing it will "secure" the UK's domestic energy supply. In recent years, oil and gas firms have been taxed heavily on their UK profits and there has been concerns in the industry that this might put off companies from investing in areas such as the exploration of new oil and gas wells.