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THE UK government claims to have received a record-breaking amount of applications from companies looking to drill for oil and gas in the North Sea.

According to the Department of Energy and Climate Change (DECC), it received a total of 224 applications for its latest licensing round, 37 more than the previous record.

Energy minister Charles Hendry says that the record-breaking result shows that “there remains an extraordinary level of interest in North Sea oil and gas,” and hails it as “tremendous news for industry and for the UK economy.”

“We have been working extremely hard with the oil and gas industry to ensure the UK remains an attractive place to invest,” he adds. “Now our task is to ensure this considerable level of interest continues and that we make the most of this valuable, British resource.”

The government credited much of the renewed interest to the UK’s latest budget, which included a series of new field allowances designed to boost investment in deeper, smaller and ageing fields. The reaction sits in stark contrast to its previous effort, which introduced a £2bn (US$3.1bn) tax hike that industry body Oil & Gas UK blamed for a 50% drop in exploration last year.

Mike Tholen, the group’s economics director, says the news from DECC is “very welcome” but warns that the government must not get complacent.

“What is key is that changes posed in the 2012 budget are established later this year to the best effect so that this interest is converted into exploration, development and ultimately new production with all its positive economic benefits,” he says.