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While the initial term is associated with a work programme of exploration work that must be completed if the licence is to continue into a second term, the licensee has the right to start production during the initial term, if the licensee can move quickly enough, subject to normal regulatory controls.
Initial term... ...the right to start production... ...subject to normal regulatory controls.
While the initial term is associated with a work programme of exploration work that must be completed if the licence is to continue into a second term, the licensee has the right to start production during the initial term, if the licensee can move quickly enough, subject to normal regulatory controls.
Initial term... ...the right to start production... ...subject to normal regulatory controls.
Petroleum Exploration and Development Licence
An onshore production licence is known formally as a Petroleum Exploration and Production Licence (PEDL).
Petroleum Exploration and Development Licence
Initial term Five years
Second term Five years
Third term 20 years
Mandatory reliquishment at end of initial term 50%
Production licences
Recent onshore licences have the Prefix PEDL but there are older licences which are still extant with a prefix of AL, CE, DL, EXL, ML or PL. Except in special circumstances, onshore production licences run for three successive periods or terms:
Initial term
Associated with an exploration work programme that the licensee will have agreed with the OGA during the competitive application process. The licence will expire at the end of its initial term unless the licensee has completed the work programme and surrendered a fixed amount of acreage (usually 50%).
While the initial term is associated with a work programme of exploration work that must be completed if the licence is to continue into a second term, the licensee has the right to start production during the initial term, if the licensee can move quickly enough, subject to normal regulatory controls.
Second term
The second term is associated with appraisal and development. There is no agreed work programme; instead the licence will expire at the end of its second term unless the OGA has approved a development plan.
Third term
The third term is intended for production. The OGA has the discretion to extend the term if production is continuing, but reserves the right to reconsider the provisions of the licence before doing so, especially the acreage and rentals.
Each licence carries an annual charge, called a rental. Rentals are due each year on the licence anniversary. Rentals are charged at an escalating rate on each square kilometre the licence covers at that date. They are designed to encourage licensees to decide which acreage to retain and to surrender acreage they don’t want to exploit.
While the initial term is associated with a work programme of exploration work that must be completed if the licence is to continue into a second term, the licensee has the right to start production during the initial term, if the licensee can move quickly enough, subject to normal regulatory controls.
Petroleum Exploration and Development Licence
An onshore production licence is known formally as a Petroleum Exploration and Production Licence (PEDL).
RNS dated 5/10/18 states KL4 EWT currently underway.
RNS dated 10/10/18 states that KL3 EWT programme has recorded sustained light, sweet Crude oil flow...
Which one is currently under test and which one is next?
Appolgies if this has already been explained!
Foto 1 all tanks appear to be empty or no level indicated i.e. view obscured, foto 2 only the tank on the far right has an indicated level approx 140 - the indicator flags have changed from white to red, magnetic float type level gauge.