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Energy Act 2008

Summary and Background

365.Section 76 makes amendments to Part 1 of the Petroleum Act 1998 (the “1998 Act”) (which concerns the licensing of petroleum exploration and extraction). These amendments give the Secretary of State new powers relating to the unconsented transfer of rights or benefits under petroleum licences. Section 77 and Schedule 3 amend various model clauses of petroleum licences granted pursuant to the 1998 Act or the Petroleum (Production) Act 1934 (c.34) (the “1934 Act”). The amendments to model clauses are intended to ensure the more efficient management of the licence and to ensure that suspended petroleum wells are properly abandoned including:

  • a power of partial revocation of a licence in the event of, for example, the insolvency of one, but not all, of the persons constituting the licensee;

  • a new obligation for the licensee to provide contact details to the Minister; and

  • a new power to require a licensee to plug and abandon a well which has been suspended for at least one month.

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