The UK Government has awarded the first licenses for oil and gas exploration west of the Outer Hebrides.

The 28th round of oil licensing is believed to be among the largest since the scheme began in 1964 - although fewer licenses were issued than in 2012.

Sixty investors bid for licenses covering 252 blocks of seabed around UK waters, including two lots of nine blocks north and west of Lewis.

Oonagh Werngren, operations director of industry body Oil and Gas UK, said the blocks west of Lewis awarded to Austrian firm OMV are "absolutely new territory".

Ms Werngren said: “These are new areas which OMV are trying to open up. They’re aiming to acquire new regional data to see if there are indications of oil or gas in that area.

“This is absolutely new territory. OMV are trying to open up a new area and Oil and Gas UK are very eager to see how it turns out.”

Ten licenses south west of Lewis were awarded in a previous licensing round.

New blocks were awarded west of Shetland and in the northern and central North Sea. Licenses were also issued in the southern North Sea, English Channel and in the North Channel and Morecambe Bay.

Ms Werngren added: “While the number of licences is less than the record number of applications in the 27th licensing round, this news is a good sign that investors continue to show interest in the basin.

"It is interesting to note more than 60 companies applied for licences in this round and that the majority comprised smaller investors.

"Perhaps what is most telling is the nature of the work programmes that companies have committed to, with only five firm wells and four contingent wells being included.

"Most licences have been awarded on the basis of obtaining or reprocessing 2D and 3D seismic data. The disappointingly low number of wells highlights the need to stimulate new plays through detailed technical work which requires measures to encourage more investment in the UK Continental Shelf (UKCS).

“The industry is facing a number of major challenges, including the lowest level of exploration for some time and rising costs in the sector.

"It is extremely important to ensure the award of these licenses translates into the drilling of more successful wells on the UKCS, and we need to ensure the pipeline of new developments continues to flow from the basin."

Source: STV News

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