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

Licensing system

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.

We run a competitive licensing system and applications may only be made in accordance with approved procedures.

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 production licences can be extended beyond their original expiry date if necessary to allow producing fields to fully exploit the associated reserves. 

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