The Petroleum Licensing (Exploration and Production) (Seaward and Landward Areas) Regulations 2004

Option to continue the Licence after the Third Term

6.—(1) At any time not later than three months before the expiry of the Third Term the Licensee may, subject to payment of those sums hereinafter provided for and to performance of the terms and conditions herein contained, give notice in writing to the Minister that he desires this licence to continue as to a part of the Licensed Area (hereinafter called “the Producing Part”).

(2) Such notice shall describe the Producing Part, which shall be an area that comprises no Section that is not, wholly or in part, the subject of a consent, approval or programme described in paragraph (3) below.

(3) If such notice is given this licence shall continue in force after the expiry of the Third Term as provided by the following paragraphs of this clause in the event that before such expiry—

(a) the Minister has given a consent in pursuance of clause 14(1) of this licence and such consent is still in force upon expiry of the Third Term, or

(b) the Minister has in pursuance of clause 14(4) of this licence approved a programme submitted to him in pursuance of clause 14(2) and such approval is still in force upon expiry of the Third Term, or

(c) the Minister has served a programme on the Licensee in pursuance of clause 14(6) of this licence and such programme is still in force upon expiry of the Third Term, or

(d) the Minister has in his discretion so directed in writing.

(4) Where the Minister has given a direction extending the Third Term of this licence in pursuance of sub-paragraph (3)(d) of this clause he may in his discretion, on notice in writing being given to him by the Licensee not later than three months before the expiry of such extension or before the expiry of any subsequent extension under this paragraph (4) that he desires the licence to continue in force thereafter, give a further direction that this licence shall so continue in force.

(5) Where this licence continues in force by virtue of this clause it shall, subject to the provisions of clause 3 of this licence, so continue during the Production Period.

(6) A direction given by the Minister in pursuance of sub-paragraph (3)(d) of this clause or further direction given by the Minister in pursuance of paragraph (4) of this clause may be given subject to such conditions as he may specify and (without prejudice to the generality of the foregoing) such conditions may, subject to the provisions of paragraph (5) of this clause, include conditions as to the duration of the extension or further extension (as the case may be) of the Third Term.