OT30012 - Capital Gains: Licences for exploration and exploitation - Offshore licences
There are three types of Offshore Production Licence:
- The main type is the 鈥楾raditional鈥� Seaward Production Licence which covers the full life of the field from exploration to decommissioning. The 鈥楶romote鈥� Seaward Production Licence is designed to allow small and start-up companies to obtain a Production Licence first and attract the necessary operating and financial capacity later.
- The 鈥楩rontier鈥� Seaward Production Licence has a 6 year exploration phase and is designed to allow companies to screen large areas for a period so that they can look for a wider range of prospects.
In addition to the above Production licences, the NSTA also issue Exploration Licences which are non-exclusive and permit the holder to conduct non-intrusive surveys, such as seismic or gravity and magnetic data acquisition, over any part of the UK Continental Shelf that is not held under a Production Licence. Wells may be drilled under these licences but must not exceed 350 meters in depth without the approval of the Secretary of State.