3 Oil & Gas Stocks That Could Benefit From New North Sea Licenses

The UK government announced this week that hundreds of new oil and gas licenses will be granted in the UK in a bid to reduce energy imports.

The news has been met with a mixed reaction from interests on both sides of the energy fence. Regardless, the move saw North Sea-related stocks rally, with investors positioning themselves for a potential revival in the industry, but which stocks could be well-placed to benefit?

Harbour Energy PLC – LON: HBR

HBR is an oil and gas firm based in Edinburgh, Scotland. The company's shares rallied on Monday, closing 5% higher following the news of the new licenses.

Harbour Energy claims it is “the largest London-listed independent oil and gas company with a leading position in the UK” and has several projects in the region. HBR could be in a prime position to benefit from the licenses.

BP PLC – LON:BP

In a bid to reap the benefits of the UK's rich energy resources beneath the North Sea, it was reported that the UK government will urge the country's major energy companies, such as Shell and BP, to invest their profits in new oil and gas ventures in the region. 

BP may be one of the large oil and gas firms to benefit from the new licenses. The company already has a strong portfolio in the region. According to reports, a firm founded by Prime Minister Rishi Sunak's father-in-law signed a billion-dollar deal with BP just two months before the hundreds of new licences in the North Sea were opened.

Shell PLC – LON: SHEL

Another obvious pick is Shell, which says it produces approximately 10% of UK oil and gas “from more than 50 interests in North Sea Fields, 30 North Sea platforms and 1 FPSO which is operated on our behalf.”

Only a few weeks ago, AIM-listed Deltic Energy, which could also be added to the list, said a discovery it made with Shell in the North Sea looked to be even bigger than expected.