Britain has handed major oil companies the right to drill for fossil fuels in 24 new licence areas across the North Sea as part of the government’s mission to extend the life of the ageing oil and gas basin.

The North Sea regulator said 17 oil companies, including Shell and BP, were granted licences in the Central North Sea, Northern North Sea and West of Shetland areas to “provide benefits to the local and wider economy”.

The latest licences, which follow an initial tranche of 27 licences offered in October last year, could begin producing oil and gas before the end of the decade, according to the North Sea Transition Authority.

The move has angered MPs and environmental campaigners who called the move “grossly irresponsible” and accused the government of overstating the economic benefits of the North Sea and sacrificing Britain’s climate leadership for “a pipe dream”.