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 (Text with EEA relevance)
Date: 2001-01-18
Institutions: United Kingdom
Subjects: United Kingdom, energy site, exploitation of resources, hydrocarbon, patents licence

C 16/2

EN

Official Journal of the European Communities

18.1.2001

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 pros-
pection, exploration and production of hydrocarbons

(2001/C 16/02)

(Text with EEA relevance)

DEPARTMENT OF TRADE AND INDUSTRY

THE PETROLEUM (PRODUCTION) (SEAWARD AREAS) REGULATIONS 1988

1. The Secretary of State for Trade and Industry invites
interested persons,
in accordance with the Petroleum
(Production) (Seaward Areas) Regulations 1988 (SI 1988
No 1213), as amended ((cid:145)the 1988 Regulations(cid:146)), and the
Hydrocarbons Licensing Directive Regulations 1995 (SI
1995 No 1434),
to apply for petroleum production
licences in respect of blocks 113/28 and 113/29. A map
which shows the blocks available for applications has been
deposited at the Library at the Department of Trade and
Industry, 1 Victoria Street, London, SW1H 0ET. This map
(44-207)
may be inspected by prior appointment
(44-207)
215 50 06
215 56 65) between 9.15 and 16.45 hours Monday to
Friday until 18 April 2001. The map is also available on
the DTI’s oil and gas website, http://www.og.dti.gov.uk.

215 50 07,

(tel.
fax

(44-207)

or

2. Any licence awarded in respect of blocks 113/28 and
incorporate in substance, subject to certain
113/29 will
modifications and additional provisions
to deal with
matters referred to below, the model clauses set out in
(Seaward
Schedule 4 to the Petroleum (Production)
Areas) Regulations 1988 (as amended) except
the
that
in paragraphs
to model clauses
amendments
set out
(a)(ii) and (c)
the Petroleum
to (h) of Regulation 8 of
(Production)
(Amendment) Regulations
1996 will not apply.

(Seaward Areas)

APPLICATIONS FOR LICENCES

3. In respect of the blocks referred to in paragraph 1:

(a) applications

should

on the

standard
be made
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
fax
(44-207) 215 50 32,
(44-207) 215 51 11 or
(44-027) 215 51 42). This documentation is
also
available on the DTI’s oil and gas website;

(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, together with
a fee of GBP 2 820 per application. Applications will
be received between 9.30 and 13.00 hours on 18 April
2001. No applications will be accepted after 13.00
hours on that date;

(c) applicants are requested to indicate if they have any
preferences between the blocks they have applied for;

(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 paragraph 9 below);

(e) applicants who are

also proposed operators

required to submit a statement of
environmental policy for
activities in seaward areas;

the conduct of

are
their general
licensed

(f)

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;

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

it

4. 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
activities that would be permitted during the initial
term of any licences or licences awarded including
the work programme submitted for evaluating the
full potential of the area within the relevant block or
blocks;

(b) the technical capability of the applicant to carry out
the activities that would be permitted during the initial
identification of hydrocarbon
term including the
prospects within the
relevant block or blocks.
Technical capability will be assessed in part upon the
quality of geological analysis related to the block or
blocks (taking into account whether work done was
innovative);

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

18.1.2001

EN

Official Journal of the European Communities

C 16/3

(d) where the applicant holds or has held a licence of any
description under the Petroleum Act 1998 or previous
legislation having similar effect, any lack of efficiency
and responsibility displayed by the
in
operations under that licence.

applicant

to acceptance by the applicant of

5. Applicants should note that while authorities representing
conservation interests and the interests of other sea users
have confirmed that there are no factors for which they
have responsibility which preclude the offer for licensing
licence awards may be
of blocks 113/28 and 113/29,
subject
terms or
conditions designed to protect such interests. Information
about
indicative conditions which may be attached to
interests may be
specific blocks to protect particular
obtained from the Department of Trade and Industry.
Details of conditions to be attached to licences additional
to those imposed by the Model Clauses set out in the 1988
Regulations will accompany the letter offering the award
of a licence. Such conditions will also be incorporated into
the main body of the licence.

6. 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 a licence will be notified no later
than one year after the receipt of applications.

7. 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.

8. 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

a work
programme proposed by the Secretary of State
following discussion with the applicant;

acceptance of

(b) remits

to the Secretary of State the appropriate
consideration referred to in paragraph 11(a) below
for the licence; and

(c) confirms in writing his acceptance of any special
conditions with which he has been asked to comply.

LICENCE TERM AND CONSIDERATION PAYABLE

9. Subject as below, licences issued in respect of the blocks
referred to in paragraph 1 will have an initial term of six
years with an option to extend for a second term of 12
years. This second term may be extended beyond 12 years
for a further period of 18 years.

10. The option to continue the licence into the second term
may be exercised by the licensee giving notice in writing

less than three months before the
to this effect not
expiration of the initial term. The licensee will
in exer-
cising this option be required to surrender part of the
licensed area except where the area consists of less than
30 sections (a (cid:145)section(cid:146) being defined as a part of a block
comprising an area bounded by minute lines of longitude
and latitude one minute apart respectively). Where a part
is required to be surrendered, it should be calculated as
follows:

(i) if the area originally comprised in the licence consisted
of 60 or more sections, the part to be surrendered
should be not
the number of such
sections; or

less than half

(ii) if the area originally comprised in the licence consisted
of more than 30 but fewer than 60 sections, the part
to be surrendered should be such number as will leave
a continuing part consisting of 30 sections.

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

(Seaward Areas)

11. The consideration required in respect of production
in

this invitation will

licences granted as a result of
summary be:

(a) an initial payment, at the time the offer of a licence is
accepted, of GBP 410 for each square kilometre
comprised in the licensed area;

the date of commencement of

(b) subsequent annual payments commencing on the sixth
anniversary of
the
licence term (following exercise of the option to hold
the licence for a second term) when the sum of
GBP 470 will be payable for each square kilometre
in the area to which the licence then relates and
rising by annual
increments of GBP 470 until an
annual sum of GBP 7 050 is payable for each square
kilometre comprised in the licence area, subject
to
biennial review in line with movements in the (cid:145)Index
the price of crude oil acquired by refineries(cid:146)
of
if
(published in the Digest of UK Energy Statistics)
the Secretary of State so determines. The Secretary of
State will not make a biennial determination increasing
or decreasing the annual payments due unless the
in the payment set being
determination will result
set by the
over 5 % higher or
the first
previous determination, or in the case of
biennial
than
GBP 7 050 for each square kilometre. Further details
concerning the payments due are available from the
Department of Trade and Industry;

determination,

5 % higher

than that

lower

over

(c) 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.