United Kingdom Government notice concerning European Parliament and Council Directive 94/22/EC of 30 May 1994 on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

(2000/C 12/05)

DEPARTMENT OF TRADE AND INDUSTRY

THE PETROLEUM (PRODUCTION) (LANDWARD AREAS) REGULATIONS 1995

1. The Secretary of State for Trade and Industry invites interested persons, in accordance with the Petroleum (Production) (Landward Areas) Regulations 1995 (S.I. 1995 No 1436) and the Hydrocarbons Licensing Directive Regulations 1995 (S.I. 1995 No 1434), to apply for petroleum exploration and development licences in respect of the blocks coloured yellow on maps deposited at the Library at the Department of Trade and Industry, 1 Victoria Street, London, SW1H 0ET. These maps, may be inspected by prior appointment (telephone No (44-0207) 215 5006 or (44-0207) 215 5007, fax No (44-0207) 215 5665) between 9.15 and 4.45 p.m. Monday to Friday until 5 May 2000. This is the Ninth round of landward licensing.

APPLICATIONS FOR LICENCES

2. In respect of all blocks referred to in point 1 above:

(a) applications should be made on a standard application form available from the Department of Trade and Industry; copies of the application form and all other documents referred to in the text of this notice as being available from the Department of Trade and Industry may be obtained from the Licensing Branch, Oil and Gas Directorate, Department of Trade and Industry, 1 Victoria Street, London, SW1H 0ET (tel. (44-0207) 215 5111 or (44-0207) 215 5032, fax (44-0207) 215 5142);

(b) applications should be delivered to the Oil and Gas Directorate of the Department of Trade and Industry at 1 Victoria Street, London, SW1H 0ET between 9.30 a.m. and 12 noon on 5 May 2000 together with a fee of GBP 1000 per application. No applications will be accepted after 12 noon on 5 May 2000;

(c) applicants are requested to indicate where possible any preferences they have as between the blocks they have applied for, and should indicate if any of the blocks applied for are alternatives;

(d) applicants are required to provide details of the work programme for the initial term which they intend to carry out if awarded a licence (see point 7 below);

(e) further guidance on the material with which applicants may support their applications is given in Notes for Applicants, available from the Department of Trade and Industry;

(f) unless otherwise stated in the Notes for Applicants, material supplied in support of applications will be treated in confidence; such material will not be disclosed to third parties without agreement of the applicant, unless it is already in the public domain or the disclosure is required by law.

3. Applications will be judged against the background of the continuing need for expeditous, thorough, efficient and safe exploration to identify oil and gas resources within the mainland of Great Britain, with due regard to environmental considerations. Applications will be judged on the basis of the following criteria:

(a) the financial capability of the applicant to carry out the activities that would be permitted under the licence during the initial term including the work programme submitted for evaluating the full potential of the area within the block or blocks applied for;

(b) the technical capability of the applicant to carry out activities that would be permitted under the licence during the initial term including the identification of hydrocarbon prospects within the block or blocks applied for. The technical capabilities will be assessed in part upon the quality of geological analysis related to the block or blocks applied for, (including taking into account whether the technical work already done or proposed is innovative);

(c) the way in which the applicant proposes to carry out the activities that would be permitted under the licence including the quality of the work programme submitted for evaluating the full potential of the area applied for;

(d) where the applicant holds or has held a licence granted under or treated as having been granted under the Petroleum Act 1998, any lack of efficiency and responsibility displayed by the applicant in operations under that licence.

4. Following examination of all applications in respect of the blocks referred to in paragraph 1, the Secretary of State will select the applicants to whom he is prepared to award licences. If there are two or more applicants for a block who would be equally acceptable to the Secretary of State as licensees for that block he may suggest that the licence should be held jointly by some or all of the applicants. Applicants to whom the Secretary of State is prepared to award licences will be notified within a period of six months commencing on 5 May 2000.

5. Unsuccessful applicants will be notified in writing. An applicant will be notified of the reasons for the Secretary of State's decision if he submits a written request for this information to be provided.

6. In all cases where the Secretary of State is prepared to award a licence, it will be offered on the condition that, within 21 days of the date on which the Secretary of State makes the offer, the applicant

(a) confirms in writing his acceptance of a work programme proposed by the Secretary of State following discussion with the applicant; and

(b) remits to the Secretary of State the appropriate consideration referred to in paragraph 8(a) below for the licence.

LICENCE TERM AND CONSIDERATION PAYABLE

7. Licences issued in respect of the blocks referred to in paragraph 1 will incorporate the model clauses in Schedule 3 to the Petroleum (Production) (Landward Areas) Regulations 1995 and will have an initial term of six years and a second term of five years. A licence may be extended after the expiry of the second term for a further period of twenty years.

8. The consideration required in respect of petroleum exploration and development licences granted as a result of this invitation will be:

(a) an initial payment, at the time the offer of a licence is accepted, of GBP 25 for each square kilometre comprised in the licensed area;

(b) on the first, second, third, fourth and fifth anniversaries of the date of commencement of the licence term, the sum of GBP 25 will be payable for each square kilometre in the area to which the licence then relates;

(c) on the sixth and subsequent anniversaries of the date of commencement of the licence term, payments calculated by reference to the number of square kilometres in the area to which the licence then relates and subject to biennial review in line with movements in the Index of the Price of Crude Oil Acquired by Refineries (published in the Digest of UK Energy Statistics) if the Secretary of State so determines. Further details concerning the payments due are available from the Department of Trade and Industry.

(d) a royalty at the rate of 12,5 % payable in respect of petroleum won and saved from any field part of which received development consent prior to 1 April 1982.