Erikka Askeland, the executive chairman of UK Oil & Gas (UKOG), recently announced a significant strategic move by the company. In a bid to invest in hydrogen storage projects in Dorset and Yorkshire, UKOG has decided to sell two onshore oil and gas licenses in Hampshire. The sale, valued at £400,000, involves transferring its subsidiary holding interests in oil and gas-producing licenses to Servatec Holdings Limited based in Nottinghamshire.
The transaction includes selling UKOG’s 10% stake in PL211 and a 5% interest in PEDL070, which encompass the Horndean and Avington oil fields located in Hampshire. Notably, the Horndean field alone has yielded about 2.4 million barrels of oil since it commenced production back in 1987.
Despite this divestment, UK Oil & Gas still retains ownership of the PEDL234 license at Loxley/Godley Bridge for a natural gas/hydrogen feedstock appraisal project. Additionally, the company maintains a majority stake in the PEDL137 Horse Hill project situated in Surrey.
Stephen Sanderson, CEO of UKOG, emphasized that this strategic shift aligns with their broader objective of transitioning from traditional hydrocarbons towards clean hydrogen storage and production technologies. He highlighted how pivotal this move is for advancing their subsidiary UK Energy Storage’s substantial salt cavern hydrogen storage initiatives both in Dorset and Yorkshire.
In recent years, UK Oil & Gas has been actively seeking opportunities to expand its presence within the renewable energy sector. Through its subsidiary UK Energy Storage (UKEn), the company secured agreements to develop an energy hub centered around a massive hydrogen-ready salt cavern gas storage facility at a former Royal Navy port site in Dorset.
Furthermore, last year saw UKOG raise substantial funds amounting to £500,000 from investors specifically for acquiring land earmarked for a salt cavern hydrogen storage site located in East Yorkshire near the North Sea coast. This strategic positioning provides direct access to seawater essential for dissolving caverns efficiently. Moreover, being part of the East Coast cluster presents numerous advantages as it hosts various low-carbon projects focusing on industrial carbon capture and low-carbon hydrogen production schemes stretching across Humber and Teesside regions.
Sanderson expressed optimism about these developments stating that
“this divestment is fully aligned with our vision of transitioning away from hydrocarbons into clean hydrogen storage and production.”
He further added his well wishes for Servatec Holdings Limited as they take over stewardship of UKOG’s assets going forward.
The decision made by UK Oil & Gas reflects broader industry trends where more companies are recognizing the importance of investing in sustainable energy solutions like hydrogen infrastructure amid growing environmental concerns globally.
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