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

(2003/C 309/05)

(Text with EEA relevance)

ANNOUNCEMENT OF UNITED KINGDOM ONSHORE (LANDWARD) OUT OF ROUND OFFER ON THE UK ORDNANCE SURVEY BLOCKS SN 88; 89; 97; 98; 99

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 acreage above the Medium High Water Mark within UK Ordnance Survey Blocks SN 88; 89; 97; 98; 99. A map showing these blocks is available on the DTI's oil and gas web site, http://www.og.dti.gov.uk.

Applications for licences

2. In respect of all blocks referred to in paragraph 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, Exploration and Development Branch, Oil and Gas Directorate, Department of Trade and Industry, 1 Victoria Street, London, SW1H 0ET (telephone 44-(0) 207 215 50 32, fax 44-(0) 207 215 50 70). This documentation is also available on the DTI's oil and gas web site, http://www.og.dti.gov.uk;

(b) applications should be delivered to the Licensing and Consents Unit of the Department of Trade and Industry at 1 Victoria Street, London, SW1H 0ET before 13.00 hrs on 22nd March 2004 together with a fee of GBP 1000 per application. No applications will be accepted after 13.00 hrs on 22nd March 2004;

(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;

(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 or from the DTI's oil and gas web site, http://www.og.dti.gov.uk.

3. Applications will be judged against the background of the continuing need for expeditious, thorough, efficient and safe exploration to identify oil and gas resources within the mainland of Great Britain. 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. Applicants to whom the Secretary of State is prepared to award licences will be notified within a period of 6 months commencing on 22nd March 2004.

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 28 days of the date on which the Secretary of State makes the offer, the applicant:

(a) confirms in writing his acceptance of all the terms of the licence and 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 clauses based on the Model Clauses set out in Schedule 3 to the Petroleum (Production) (Landward Areas) Regulations 1995. Licences 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.

Special note

9. The acreage contains certain existing works, and it will be a condition of any offer of a Licence that the applicant will accept responsibility for them (as if they had been drilled under the Licence being offered). Further details are available from the contact below.

Confidentiality

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

Exceptions

11. 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).

Application dates

12. Applications must be received by the Department of Trade and Industry on or before 13.00 on 22nd March 2004.

Contact details

Ricki Kiff: Licensing and Consents Unit, Department of Trade and Industry, 1 Victoria Street, London SW1H 0ET ( tel. (0-20) 72 15 50 32, fax (0-20) 72 15 50 70 ). Department of Trade and Industry Library: 1 Victoria Street, London SW1H 0ET ( tel. (0-20) 72 15 50 06/7, fax (0-20) 72 15 56 65 ). Oil & Gas Directorate's website: www.og.dti.gov.uk