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

(2002/C 12/03)

(Text with EEA relevance)

DEPARTMENT OF TRADE AND INDUSTRY

THE PETROLEUM (PRODUCTION) (SEAWARD AREAS) REGULATIONS 1988

20th OFFSHORE LICENSING ROUND

1. 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 those blocks and parts of blocks listed in the Schedule to this notice that were not subject to an existing petroleum production licence on the date of this notice. 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 09.15 and 16.45, Monday to Friday, until 16 April 2002 (referred to below as "the application date"). They are also available on the Oil and Gas Directorate's website.

2. 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 No 8 of the Petroleum (Production) (Seaward Areas) (Amendment) Regulations 1996 (S.I. 1996 No. 2946) will not apply).

3. DTI has conducted a strategic environmental assessment of the area, including all the blocks listed in the Schedule, to the standard required in Directive 2001/42/EC on the assessment of the effects of certain plans and programmes on the environment. The conclusion of the assessment was that there are no overriding reasons why this area should not be considered for oil and gas licensing. Details of the assessment, and instructions for obtaining copies, may be obtained from the website: http://www.habitats-directive.org/sea2/index.cgi

Applications for licences

4. Applications must be made on the application form for seaward production licences, which is available on the Oil and Gas Directorate's website or from the Oil and Gas Licence Administration (see below for contact details).

5. Applications must be delivered to the Department of Trade and Industry at 1 Victoria Street, London SW1H 0ET, United Kingdom, together with a fee of GBP 2820 per application. Applications will be received between 09.30 and 13.00 on the application date. No applications will be accepted after 13.00 on that date.

6. When applying for more than one block, you should indicate an order of preference.

7. 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.

8. 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).

9. 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) 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.

10. This offer is subject to further consultation by DTI on the precise acreage to be offered, including an assessment of the potential impact of activities that might be carried out under the licence on any sites that could be nominated as candidate special areas of conservation under the Habitats Directive (92/43/EEC) or special protection areas under the Birds Directive (79/409/EEC). This may result in the withdrawal of one or more of the listed blocks from this invitation, or in the addition to licences of extra conditions beyond the Model Clauses set out in Regulations. Any additional conditions will be set out in any offer of a licence.

11. Following consideration of all applications, the Secretary of State will select the applicants to whom he is prepared to award licences. They will be notified no later than one year after the application date. In all cases where 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.

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

Licence term and payments

13. Subject as below, each 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.

14. 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.

15. 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.

16. 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); and

(c) 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.

Confidentiality

17. Material supplied in support of applications will be treated in accordance with the Code of practice on access to government information.

18. Each Licence issued in this round will be subject to an amendment to Model Clause 34 to the effect that the Secretary of State shall be entitled to publish certain data as soon as the Licence ceases to have effect (whether by effluxion of time, "surrender" or revocation) if that happens before the end of the period currently specified in the Clause, which shall itself be amended from five years to three.

Exceptions

19. The terms, provisions, payments and other details relating to each licence will normally be as set out above, but the Secretary of State reserves the right to amend them in some cases to fit particular circumstances (e.g. licences that cover decommissioned fields).

Contact details

Licence Administration: Oil and Gas Directorate, Department of Trade and Industry, 1 Victoria Street, London SW1H 0ET, United Kingdom (tel. (44-20) 72 15 51 11, fax (44-20) 72 15 50 70).

Department of Trade and Industry Library: 1 Victoria Street, London SW1H 0ET, United Kingdom (tel. (44-20) 72 15 50 06/7, fax (44-20) 72 15 56 65).

Oil and Gas Directorate's website: www.og.dti.gov.uk

SCHEDULE

Applications are invited for those blocks and part-blocks listed below that were not subject to an existing Seaward Production Licence on the date of this notice. Some blocks may be withdrawn from this offer as a result of further consultation. The final definitive list of the available acreage can be viewed at the Department of Trade and Industry Library and on the Oil and Gas Directorate's website, or can be obtained from the Licence Administration.

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