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

(2003/C 138/05)

(Text with EEA relevance)

DEPARTMENT OF TRADE AND INDUSTRY

THE PETROLEUM (PRODUCTION) (SEAWARD AREAS) REGULATIONS 1988

OUT OF OFFSHORE LICENSING ROUND OFFER FOR BLOCKS 113/21 AND 113/22

The Secretary of State for Trade and Industry invites interested persons, in accordance with the Petroleum (Production) (Seaward Areas) Regulations 1988 (S.I. 1988 No 1213), as amended ("the 1988 Regulations"), and the Hydrocarbons Licensing Directive Regulations 1995 (S.I. 1995 No 1434), to apply for Petroleum Production Licences in respect of the blocks 113/21 and 113/22. The definitive list of unlicensed blocks is shown on maps deposited at the Department of Trade and Industry Library, where they can be viewed by prior appointment (see below for contact details) between 9.15 and 16.45, Monday to Friday, until 16 September 2003 (referred to below as "the Application Date"). They are also available on the Oil and Gas Directorate's website (www.og.dti.gov.uk).

1. Licences issued pursuant to this invitation will incorporate clauses based substantially, subject to certain modifications and additional provisions, on the Model Clauses set out in Schedule 4 to the Petroleum (Production) (Seaward Areas) Regulations 1988 (as amended, except that the amendments to Model Clauses set out in paragraphs (a) (ii) and (c) to (h) of Regulation 8 of the Petroleum (Production) (Seaward Areas) (Amendment) Regulations 1996 (S.I. 1996 No 2946) will not apply). With effect from 1 January 2003 royalty consideration is abolished and the Clauses will be amended as appropriate.

2. DTI has conducted an assessment of blocks 113/21 and 113/22, as required by Directive 92/43/EEC on the conservation of natural habitats and of wild fauna and flora, implemented as The Conservation (Natural Habitats, and c.) Regulations 1994. The conclusion of the assessment was that the act of licensing the area and carrying out the proposed work programme would not be likely to have a significant effect on any site in the marine environment. A copy can be requested from the LCU Administration Section (see below for contact details).

Applications for licences

3. Applications must be made on the Application Form for Seaward Production Licences, which is available on the Oil and Gas website or from the LCU Administration Section (see below for contact details).

4. Applications must be delivered to the Department of Trade and Industry at 1 Victoria Street, London SW1H 0ET, together with a fee of GBP 2,820 per application. Applications must be received by the DTI no later than 13.00 (London Time) on 16 September 2003. No applications will be accepted after that point.

5. The proposed operator within each applicant group (including any company that is the sole applicant) must submit a statement of its general environmental policy for the conduct of licensed activities in seaward areas.

6. Further guidance on the material with which applicants may support their applications is given in "Notes for Applicants", available from the Licence Administration and on the Oil and Gas Directorate's website (see below for contact details). "Promote" applications will not be accepted on these blocks.

7. Applications will be judged against the background of the continuing need for expeditious, thorough, efficient and safe exploration to identify oil and gas resources of the United Kingdom Continental Shelf, 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 agreed Initial Term Work Programme;

(b) the technical capability of the applicant to carry out the agreed Initial Term Work Programme, and as appropriate any other activities permitted under the Licence (taking into account the quality of geological analysis and degree of innovation);

(c) environmental credentials as set out in the application guidance notes;

(d) any lack of efficiency or responsibility displayed by the applicant under any other licence of any description issued under the Petroleum Act 1998 or previous legislation having similar effect.

8. Following consideration of all applications, the Secretary of State will select the applicant to whom he is prepared to award a licence. They will be notified no later than one year after the Application Date. If the Secretary of State is prepared to award a licence, DTI will prepare a draft licence and send it to the successful applicant, who will then have the option of accepting it by returning it to DTI signed by all members of the applicant group. 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.

9. The Government accepts no liability for any costs incurred by the applicant in considering or making its application.

Licence term and payments

10. Subject as below, licence will have an Initial Term of four years, with options to extend for a four-year Second Term and an 18-year Third Term.

11. The Licensee can exercise the option to continue the licence into the Second Term provided that he gives notice to that effect not less than three months before the initial term expires, and provided that he has first completed an agreed Work Programme and surrendered part of the licensed area. The maximum area that may be retained is:

a) not more than half the original number of sections covered by the licence if the licence originally covered 60 or more sections; or

b) 30 sections if the licence originally covered more than 30 but fewer than 60 sections.

The retained area must comply with Model Clause 8 in Schedule 4 to the 1988 Regulations as it stood prior to the amendments made to it by the Petroleum (Production) (Seaward Areas) (Amendment) Regulations 1996 and must be described in the said notice.

A "section" is part of a block comprising an area bounded by lines of longitude and latitude one minute apart respectively.

12. All acreage covered by the Licence that is not the subject of an approved Development Plan at the end of the Second Term is to be relinquished at that time.

13. Any licence granted as a result of this invitation will be subject to payment of consideration according to provisions set out in the Model Clauses and in Schedules to the Licence; in summary:

(a) four annual payments, beginning at the commencement of the Licence, of GBP 150 for each square kilometre that it covers;

(b) a subsequent annual payment of GBP 300 for each square kilometre covered, rising by annual increments of GBP 900 to a maximum of GBP 7500 per square kilometre (this payment is 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).

Special note

14. The Ministry of Defense's Eskmeals Firing Range largely covers the acreage within blocks 113/21 and 113/22 and as a result any Licensee must expect unusual restrictions on activity, through special Licence conditions and/or exclusions, and via other permissions (e.g. well consents). In particular, exploration drilling will not be permitted before 2004 and when permitted is likely to be subject to strict timescales. Permanent structures will not be permitted within the Firing Range during the lifetime of the Licence (on the assumption that Eskmeals Firing Range has not decommissioned during that period). Full details, including the coordinates of the area outside the Range that will be available for development activity can be provided via the contact details below.

Confidentiality

15. Material supplied in support of applications will be treated in accordance with the Code of Practice on Access to Government Information.

Exceptions

16. The terms, provisions, payments and other details relating to each licence normally be as set out above, but the Secretary of State reserves the right to amend them in some cases to fit particular circumstances.

Contact details

Licence Administration: Licensing and Consents Unit, Department of Trade and Industry, 1 Victoria Street, London SW1H 0ET (tel. (44-207) 215 51 11, fax (44-207) 215 50 70)

Department of Trade and Industry Library: 1 Victoria Street, London SW1H 0ET (tel. (44-207) 215 50 06/7, fax (44-207) 215 56 65)

LCU's website: www.og.dti.gov.uk