Jersey Oil & Gas (AIM: JOG) has secured a six-month extension to the Second Term of its P2170 Verbier licence, aligning it with the P2498 Buchan licence as work continues on the Greater Buchan Area (GBA) development in the UK North Sea.
The extension, approved by the North Sea Transition Authority (NSTA), moves the Verbier licence expiry to 28 February 2027, allowing both licences to progress on the same timetable as part of an integrated area development strategy.
The company said the alignment reflects the NSTA’s objective of delivering an integrated Greater Buchan Area Plan, centred on the phased development of the Buchan field.
Jersey Oil & Gas expects to apply for a further extension to the Buchan licence later this year, with the submission incorporating an updated overall development schedule and a corresponding extension request for the Verbier licence.
The company added that development planning has been reassessed following delays caused by continued uncertainty surrounding the UK’s fiscal and regulatory environment. While the draft Field Development Plan proposed redeploying the Western Isles FPSO, alternative production solutions are now being evaluated given the extended project timeline.
Work will also continue on assessing opportunities to connect nearby third-party discoveries into a Buchan-led production hub, supporting the NSTA’s objective of maximising resource recovery across the wider area.
Chief executive Andrew Benitz said the licence extension provides greater flexibility as the company works towards the optimal development solution for the Greater Buchan Area.
He also urged the UK government to provide greater regulatory certainty, including bringing an early end to the Energy Profits Levy, arguing that prolonged approval processes and fiscal uncertainty have slowed investment in the North Sea despite continued reliance on domestic oil and gas.
