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 (Text with EEA relevance)
Date: 2003-03-13
Institutions: United Kingdom
Subjects: United Kingdom, offshore oil structure, patents licence, petroleum exploration, petroleum production

C 58/2

EN

Official Journal of the European Union

13.3.2003

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 author-
isations for the prospection, exploration and production of hydrocarbons

(2003/C 58/02)

(Text with EEA relevance)

DEPARTMENT OF TRADE AND INDUSTRY

THE PETROLEUM (PRODUCTION) (SEAWARD AREAS) REGULATIONS 1988

OUT OF OFFSHORE LICENSING ROUND OFFER FOR BLOCK 13/26B

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 (the 1988 Regulations), and the Hydrocarbons
Licensing Directive Regulations 1995 (SI 1995 No 1434), to
apply for petroleum production licences in respect of block
13/26b. 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 17 June 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
the
amendments to model clauses set out in (a)(ii) and (c) to
(h) of Regulation 8 of the Petroleum (Production) (Seaward
Areas) (Amendment) Regulations 1996 (SI 1996 No 2946)
will not apply). With effect from 1 January 2003 royalty
consideration is abolished and the clauses will be amended
as appropriate.

amended,

except

1988

that

(as

2. The Department of Trade

and Industry (DTI) has
conducted an assessment of block 13/26b, 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, etc.) Regulation 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 viewed on the
Licensing Consents Unit website.

Licensing and Consents Units (LCU) 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 17 June 2003. No applications
will be accepted after that deadline.

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 the ‘Notes for
applicants’, available from the Licence Administration and
on the Oil and Gas Directorate's website (see below for
contact details).

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;

Applications for licences

3. Applications must be made on the application form for
seaward production licences, which is available on the

(b) the technical capability of the applicant to carry out
the agreed initial term work programme, and as appro-
priate any other activities permitted under the licence
(taking into account the quality of geological analysis
and degree of innovation);

13.3.2003

EN

Official Journal of the European Union

C 58/3

(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 legis-
lation having similar effect.

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.

8. 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
the DTI will
of State is prepared to award a licence,
prepare a draft
to the successful
licence and send it
applicant, who will then have the option of accepting it
by returning it to the 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/she 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, 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.

11. The licensee can exercise the option to continue the
licence into the second term provided that he/she gives
notice to that effect not less than three months before
term expires, and provided that he/she has
the initial
first
and
surrendered part of the licensed area. The maximum area
that may be retained is:

agreed work

programme

completed

an

(a) not more than half the original number of sections
licence originally

licence

covered by the
covered 60 or more sections; or

the

if

(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
longitude and latitude one

bounded by lines of
minute apart respectively.

13. Any licence granted as a result of this invitation will be
subject
to
provisions set out in the model clauses and in schedules
to the licence; in summary:

consideration according

to payment of

(a)

annual

four
the
commencement of the licence, of GBP 150 for each
square kilometre that it covers;

payments,

beginning

at

(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 7 500 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.

Confidentiality

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

Exceptions

15. 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 (e.g.
licences
that cover decommissioned fields).

Contact details

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

(44-207) 215 51 11,

(tel.

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

Kingdom

United

SW1H

0ET,

LCU's website: http://www.og.dti.gov.ukwww.og.dti.gov.uk