Drilling in the North Sea rose by a third in 2012, according to a new report by business advisers Deloitte.

65 exploration and appraisal wells were drilled on the UK Continental Shelf (UKCS), according to the group.

This was an increase on 2011's figure of 49.

21 projects were approved, indicating a 10-year peak in interest in field development.

Eight projects targeted towards the redevelopment of older fields were sanctioned by the Department of Energy and Climate Change (DECC).

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Deloitte says the final quarter of 2012 turned in the strongest performance of the year, with 29% of new wells drilled between October and December.

Over 90% of new field developments in the UK were eligible for tax allowances following the 2012 Budget.

Deloitte PSG managing director Graham Sadler says the report reflects the fact that oil firms were more confident about investing in the North Sea last year.

He explained: "After several years of caution and uncertainty, we have a more positive environment, where a number of factors such as tax incentives, high oil price and appetite to invest have combined to make 2012 the most encouraging year for a long time.

"The government introduced a range of tax reliefs which have sufficient breadth and depth to create an environment in which companies of all sizes and investors have the confidence to take some risk and expand their operations in the North Sea."

(IT)