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Under the Model Clauses in the licence, licensees are required to obtain authorisation from the NSTA to install facilities or to produce hydrocarbons.

The licensing regime is designed to maximise the economic recovery of UK offshore oil and gas. 

Read about our licensing system including criteria, safety directives, operatorship, security and more.

We believe we can ensure economic recovery, whilst supporting the drive to net zero carbon by 2050, by having a diverse mix of companies involved in the UKCS – from super majors to mid-cap businesses to small, niche players.

The model clauses do not impose any requirement for approval of a change of control of a Licensee, for example, a corporate takeover, but they do grant NSTA the power to require a further change of control, and failing that a power of revocation.

As from 1 October 2016, the Energy Act 2016, and Regulations made under it, transferred certain functions from the Secretary of State for Energy and Climate Change (now the Secretary of State for Energy Security and Net Zero) to the Oil and Gas Authority.

Offshore and Onshore production licence relinquishments - surrenders - and determinations - are processed through the UK Energy Portal using the PEARS User Guidance. 

How to relinquish a petroleum licence or surrender acreage; notice periods.

The licence model clauses oblige the licensee to nominate an entity that has responsibility for organising or supervising all or any of the operations of searching or boring for or getting petroleum in pursuance of the licence, namely: 

The Petroleum E-business Assignments and Relinquishment System (PEARS) is the NSTA’s portal-based licence administration system.