The Petroleum Licensing (Production) (Seaward Areas) Regulations 2008

Initial Term

4.—(1) Where a Drill-or-Drop Period is specified, this licence shall, unless the Minister in his discretion decides otherwise, automatically cease and determine on the expiry of that period in the event of failure by the Licensee before the expiry of that period to—

(a) take the actions that are described in Part I of the Work Programme; and

(b) undertake to complete on or before expiry of the Initial Term the work described in Part II of the Work Programme.

(2) Where a Promote Period is specified, this licence shall, unless the Minister in his discretion decides otherwise, automatically cease and determine on the expiry of that period in the event of failure by the Licensee before the expiry of that period to—

(a) take the actions that are described in Part I of the Work Programme;

(b) undertake to complete, before the expiry of the Initial Term, the work described in Part II of the Work Programme; and

(c) demonstrate to the satisfaction of the Minister (whose decision shall be final)—

(i) the financial capacity of the Licensee to meet the obligations undertaken under sub-paragraph (b) above in addition to all of the obligations imposed by this licence; and

(ii) the competence of the relevant persons to organise and supervise any of the operations of searching or boring for Petroleum.

(3) The relevant persons referred to in paragraph (2)(c)(ii) of this clause are—

(a) any person nominated by the Licensee for approval under clause 24 of this licence; or

(b) the Licensee, where the Licensee is one person and he has not nominated anybody for such approval.