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: 2003-06-13
Institutions: United Kingdom
Subjects: capacity to exercise rights, extraction of oil, hydrocarbon, mineral prospecting, mining operation

13.6.2003

EN

Official Journal of the European Union

C 138/9

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 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
(see below for contact details) between
prior appointment
9.15 and 16.45, Monday to Friday, until 16 September 2003
(referred to below as ‘the Application Date’). They are also
available
and Gas Directorate's website
(www.og.dti.gov.uk).

the Oil

on

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 paragraphs (a)
(ii) and (c)
the Petroleum
(Production)
(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.

to (h) of Regulation 8 of
(Seaward Areas)

amended,

except

1988

that

(as

2. DTI has conducted an assessment of blocks 113/21 and
113/22, as required by Directive 92/43/EEC on the conser-
vation 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
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.

fee of GBP 2,820 per

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
their applications is given in ‘Notes for
may support
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;

C 138/10

EN

Official Journal of the European Union

13.6.2003

(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 legis-
lation 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. Unsuc-
cessful
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
licence originally

licence

covered by the
covered 60 or more sections; or

the

if

provisions set out in the Model Clauses and in Schedules
to the Licence; in summary:

(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 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.

b) 30 sections if the licence originally covered more than

30 but fewer than 60 sections.

Exceptions

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)
(Amendment) Regulations 1996 and
(Seaward Areas)
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
the

of an approved Development Plan at
Second Term is to be relinquished at that time.

the end of

13. Any licence granted as a result of this invitation will be
to

consideration according

to payment of

subject

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

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

and

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