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LICENSING ROUNDS
DTI issues licences through competitive Licensing Rounds. We believe that this method yields better-quality bids than other methods. Unlike auctions, for instance, it does not divert significant sums of money away from exploration work, and it gives a much better expectation that a Licence will be awarded to the bid that promises to optimise the exploitation of the UK's petroleum resources.
We are committed to a regular timetable of one onshore and one offshore Licensing Round each year.
OUT-OF-ROUND APPLICATIONS
The vast majority of Seaward Production Licences or Petroleum Exploration and Development Licences are issued in Licensing Rounds, but particular cases may present compelling reasons to issue a Licence outside a Round. It rests with the company seeking an Out-of-Round Licence to make a case to DTI that we should invite Out-Of-Round Applications. Even if we do so, though, in most cases the Hydrocarbons Licensing Directive, as implemented by the Hydrocarbons Licensing Directive Regulations, still require us to follow the usual procedures, including an invitation for applications in the European Journal at least 90 days in advance.
In the past, we have accepted clear grounds of urgency (for example, temporary availability of a drilling rig). We will also consider cases where there is no prospect of competition anyway (generally because the acreage can only be of interest to a company whose existing licence covers adjoining acreage). Any request to invite Out-Of-Round applications must show why the case is so unusual that an exception is justified - we would not consider simple impatience, or expectations of oil price movements, for instance.
HOW TO APPLY FOR A SEAWARD PRODUCTION LICENCE OR A PETROLEUM EXPLORATION AND DEVELOPMENT LICENCE
Once DTI has invited applications, whether in a Licensing Round or out-of-round, they must be made on the correct Application Form. There is guidance about applying for Licences during a Licensing Round.
Anyone seeking a Licence out-of-round must first convince DTI to invite applications. Such an approach should be made in writing to Peter Carter in our Policy Unit. If we decide to invite applications, use the same Application Form. For most purposes the Guidance also applies to out-of-round applications.
HOW TO APPLY FOR AN EXPLORATION LICENCE
You can apply for a Seaward Exploration Licence at any time, using a different Application Form.
Queries and requests to:
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