LONDON, Feb 12 (Reuters) - The number of new explorationwells to be drilled in the British part of the North Sea thisyear is set to fall to the lowest since the hunt for oil andnatural gas began there in the early 1970s, research byconsultancy 1Derrick showed.
Only 15 exploration wells are currently expected to bedrilled offshore Britain this year, including BP's SouthFarragon well and Premier Oil's Laverda/Slough andBagpuss prospects, the lowest since 1971.
The number of exploration and appraisal wells fell to 20 in2015 and many oil and gas companies active in the North Sea haveextended or cancelled their licences, 1Derrick data showed.
Energy companies have slashed spending on exploration andother costs as they weather a market downturn that has seencrude prices fall by 70 percent since mid-2014.
The British part of the North Sea has been hit especiallyhard as tighter wallets meet some of the highest exploration andoperating costs in the world due to the basin's maturity.
The government is set to make its oil and gas licensingregime more attractive this year by giving companies morefreedom on timing, the head of Britain's oil regulator toldReuters on Thursday.
"It will minimise the administrative burden on industry andensure decisions are made in a fair and transparent way," aspokesman for the Oil and Gas Authority (OGA) said.
The OGA, tasked with making sure North Sea oil and gasoperators maximise extraction, will launch the 29th offshorelicensing round this year, he said.
Britain is estimated to have billions of barrels left forextraction in the North Sea, worth around 200 billion pounds toUK government coffers. (Reporting by Karolin Schaps; Editing by Jan Harvey)