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 (Text with EEA relevance)
Date: 2004-03-04
Institutions: United Kingdom
Subjects: United Kingdom, exploitation of resources, hydrocarbon, management of resources, security of supply

C 56/2

EN

Official Journal of the European Union

4.3.2004

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 pros-
pection, exploration and production of hydrocarbons

(2004/C 56/02)

(Text with EEA relevance)

ANNOUNCEMENT OF UNITED KINGDOM ONSHORE AND OFFSHORE OIL AND GAS LICENSING ROUND

DEPARTMENT OF TRADE AND INDUSTRY

THE PETROLEUM (PRODUCTION) (SEAWARD AREAS) REGULATIONS 1988

OFFSHORE (SEAWARD)

(referred to below as

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.
to apply for Seaward Production
1995 No. 1434),
Licences
‘Traditional Licences’),
Promote Seaward Production Licences (referred to below
as ‘Promote Licences’), and Frontier Seaward Production
Licences
In
particular the Secretary of State invites applications for
‘Frontier’ and ‘Traditional’ Production Licences
in the
areas marked SEA 1 and SEA 4, and applications for
‘Traditional’ and ‘Promote’ Seaward Production Licences
in the areas marked SEA 2 and SEA 3. Details of these
Licence
at:
www.og.dti.gov.uk

(referred to below as ‘Frontier Licences’).

the website

available

types

are

on

2. This invitation is in respect of those blocks and parts of
blocks that are not subject
to an existing petroleum
production licence on the date of this notice in the areas
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 2 June 2004. The
maps and a list of the blocks and part blocks comprising
this offer are also available on the DTI's Oil and Gas
website (www.og.dti.gov.uk). This is the United Kingdom
Continental Shelf (UKCS) 22nd Round of Licensing.

3. Licences issued pursuant to this invitation will incorporate
clauses based substantially on the Model Clauses set out in
Schedules 2 and 3 of The Petroleum Licensing (Exploration
(Seaward and Landward) Regulations
and Production)
2004.

4. A Strategic Environmental Assessment (SEA) of the area
marked as SEA 4 has been conducted and the findings of
the assessment can be found at the website below, (SEA's
for the areas SEA 1-SEA 3 can be found at the same site):

http://www.offshore-sea.org.uk/sea/index.php

APPLICATIONS FOR LICENCES

either

5. Applications must be made on the Application Form for
Seaward Production Licences, which is available on the
DTI's Oil and Gas website or from the Licensing and
Consents Unit Licence Administration (see below for
contact details). An application must be
for
Frontier, Promote, or Traditional Licences; they may not
be mixed. While an applicant may apply for different types
of Licence over different pieces of acreage, no applicant
may apply for different types of Licence over the same
acreage. All
and
applications, Traditional,
Frontier, 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. The
Department of Trade and Industry will set up a desk to
receive Traditional, Frontier and Landward Applications
between 9.30 and 13.00 hrs on the 3 June 2004. For
‘Promote’ Licence applications the desk will be set up
between 9.30 and 13.00 hrs on the 4 June 2004,
although earlier
submissions would be accepted. No
application will be accepted after 13.00 hrs on the last
day.

Promote,

6. All 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.

7. When applying for more than one block, applicants should
indicate an order of preference. There will be no restriction
on the number of blocks that may be applied for, but
there will be a maximum contiguous area for each
Licence, and a maximum on the overall acreage awarded
to a particular Applicant Group. The DTI may also limit
the award in terms of numbers of blocks in a contiguous
area or in terms of the spread of awards where it is in the
interests of maximising recovery on the UKCS.

8. Further guidance on the material with which applicants
may support
their applications is given in ‘Notes for
Applicants’, available from the Licence Administration
Group and on the DTI's Oil and Gas website (see below
for contact details).

4.3.2004

EN

Official Journal of the European Union

C 56/3

Traditional Applications

9. 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 (within four
years);

(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 geotechnical
analysis and degree of innovation);

(c) any lack of

activity,

responsibility
displayed by the applicant under any other licence of
any description issued under the Petroleum Act 1998
or previous legislation having similar effect.

efficiency or

10. 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.

Frontier Applications

11. Applications will be judged on the basis of the following

criteria:

(a) the financial capability of the applicant to carry out the
agreed Work Programme before the end of the Second
Term (within six years);

(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 geotechnical
analysis and degree of innovation);

(c) any lack of

activity,

responsibility
displayed by the applicant under any other licence of
any description issued under the Petroleum Act 1998
or previous legislation having similar effect.

efficiency or

12. 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.

Promote Applications

13. Applications will be judged on the basis of the following

criteria:

(b) the quality of the applicant's approach to securing the
additional financial and technical resources that would
be
substantive work
programme contemplated in the second two years of
the Initial Term;

complete

needed

the

to

(c) any lack of

activity,

responsibility
displayed by the applicant under any other licence of
any description issued under the Petroleum Act 1998
or previous legislation having similar effect.

efficiency or

14. Promote Licences will expire after two years if the Licensee
has not satisfied DTI of its technical and financial capacity
to complete the Initial Term Work Programme which will
include a firm commitment at that time to the drilling of
at
least one well, or to conduct an equivalent agreed
substantive activity. The Initial Term Work Programme
must be carried out within four years.

15. Following consideration of all applications, the Secretary of
State will notify all applicants in writing of his decisions.
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. An unsuccessful
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.

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

LICENCE RENTAL PAYMENTS

17. 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

Traditional Licences

(a)

annual payments, beginning

com-
four
mencement of
the Licence, of GBP 150 for each
square kilometre that it covers at the anniversary of
its coming into force;

the

at

(b) subsequent annual payments 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
United Kingdom Energy Statistics); and

(a) the technical and innovative capability of the applicant
to carry out the agreed Work Programme to establish a
viable drilling prospect during the first two years of the
licence
any other activities
relevant,
and, where
permitted under the Licence;

Promote Licences

(c) as for traditional applications, except that payments
will be reduced by 90 % for the first two years of
the licence only;

C 56/4

EN

Official Journal of the European Union

4.3.2004

Frontier Licences

215 51 42). This documentation is also available on
the DTI's oil and gas website (http://www.og.dti.gov.uk);

(d) six annual payments, beginning at the commencement
of the Licence, of GBP 50 for each square kilometre
that it covers at the anniversary of its coming into
force; except that payments will be reduced by 90 %
for the first two years of the licence only;

(e) subsequent annual payments
stated for the traditional rates.

(see above) as

those

ONSHORE (LANDWARD)

THE PETROLEUM (PRODUCTION) (LANDWARD AREAS)
REGULATIONS 1995

for

and

18. The Secretary of State for Trade and Industry invites
in accordance with the Petroleum
interested persons,
(Landward Areas) Regulations 1995 (S.I.
(Production)
Licensing
the Hydrocarbons
1995 No 1436)
to
Directive Regulations 1995 (S.I. 1995 No 1434),
Petroleum Exploration and Development
apply
Licences in respect of
those onshore areas above the
Medium High Water Line (although the area below the
Medium High Water line within the Solent Bay closing
lines and marked on the maps detailed below will form
part of
this offer although no surface drilling will be
possible under any Licence issued for this area) that are
not subject to an existing petroleum production licence or
current out of round offer on the date of this notice
shown in areas on maps deposited at the Library at the
Department of Trade and Industry, 1 Victoria Street,
London, SW1H 0ET. These maps may be inspected by
prior appointment (tel. (44-207) 215 50 06, fax (44-207)
215 56 65) between 9.15 a.m. and 4.45 p.m. Monday to
Friday until 2 June 2004. The maps are also available on
the DTI's oil and gas website, (http://www.og.dti.gov.uk).
This is the 12th Round of Landward Licensing.

(b) applications should be delivered to the Licensing and
the Department of Trade and
Consents Unit of
Industry at 1 Victoria Street, London, SW1H 0ET
between 9.30 and 13.00 hrs on 3 June 2004
together with a fee of GBP 1 000 per application.
No applications will be accepted after 13.00 hrs on
3 June 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 website
(http://www.og.dti.gov.uk).

21. 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 work
programme submitted for evaluating the full potential
of the area within the block or blocks applied for;

term including

initial

the

19. In line with the

condition stipulated above United
Kingdom Ordnance Survey Blocks NS 88, 89, 97, 98,
99 are currently the subject of an Out of Round offer
and therefore do not comprise part of this 12th Round
of Landward Licensing offer.

Application for licences

20. In respect of all blocks referred to in paragraph 18:

(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, Explo-
ration and Development Branch,
and
Consents Unit, Department of Trade and Industry, 1
Victoria Street, London, SW1H 0ET (tel.
(44-207)
fax (44-207)
215 51 11 or

(44-207) 215 50 32,

Licensing

(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 work programme
submitted for evaluating the full potential of the area
applied for;

the quality of

(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 respon-
sibility displayed by the applicant in operations under
that licence.

4.3.2004

EN

Official Journal of the European Union

C 56/5

22. Following consideration of all applications, the Secretary of
State will notify all applicants in writing of her decisions.
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. An unsuccessful
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.

(published

subject to biennial review in line with movements in
the Price of Crude Oil Acquired by
the Index of
Refineries
of United
if the Secretary of State
Kingdom Energy Statistics)
the
details
so
payments due are available from the Department of
Trade and Industry.

in the Digest

determines.

concerning

Further

General confidentiality

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

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

Licence term and consideration payable

24. Licences issued in respect of the blocks referred to in
paragraph 18 will
incorporate clauses based on the
Model Clauses set out in Schedule 4 to the Petroleum
Licensing (Exploration and Production)
(Seaward and
Landward Areas) Regulations 2004. 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.

25. The consideration required in respect of petroleum explo-
ration 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
each square kilometre

accepted, of GBP 25 for
comprised in the licensed area;

(b) on the first, second,

fourth and fifth anni-
third,
versaries 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 kilo-
metres in the area to which the licence then relates and

Exceptions

27. 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

28. Seaward

Production Licences

Licences’),
Frontier Seaward Production Licences (‘Frontier Licences’),
Landward
and Development
Licences. Between 9.30 a.m. and 13.00 on 3 June 2004.

Petroleum Exploration

(‘Traditional

29. Promotional

(‘Promote
Licences’). Between 9.30 a.m. and 13.00 on 4 June 2004.

Production Licences

Seaward

Contact details

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

(44-207) 215 51 11,

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).

Licensing and Consents Unit website: www.og.dti.gov.uk