The Petroleum (Production) (Seaward Areas)(Amendment) Regulations 1996

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Petroleum (Production) (Seaward Areas) Regulations 1988 (“the Principal Regulations”) which relate to applications for offshore petroleum exploration and production licences and the clauses to be incorporated in such licences.

The amendments contained in regulations 5 and 6 of these Regulations enable the Secretary of State to offer for licence tranches of blocks as well as or in addition to individual blocks and reduce the fee payable upon application for a production licence.

Regulation 7 of these Regulations extends the particulars required to support an application for a licence.

Regulation 8 amends the model clauses for incorporation into petroleum production licences. The principal changes are to provide that—

(a) the licence may continue for four consecutive terms of 3, 6, 15 and 24 years;

(b) extension of the licence beyond the initial term of 3 years is dependent upon provision of a programme for further exploration;

(c) unless the Secretary of State otherwise consents, the licensed area retained by the Licensee into the third term is dependent upon the number of wells drilled during the initial and second terms.