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The development phase of the oil and gas life cycle covers the period after an economic discovery has been made and details the processes required to take the discovery up to, but before, the production phase. 

The NSTA may propose the determination of an area as a “Cluster Area” in accordance with the Supplementary charge: cluster area allowance provisions in Finance Bill 2015.

The Oil Taxation Act 1975 states that all fields are to be “determined” by a boundary drawn around them. A proposed determination of a field must be made before the NSTA can consent to a Field Development Plan (FDP).

Under the model clauses applicable to a seaward production licence, licensees require the NSTA’s consent to erect or carry out permanent works for the purpose of getting or conveying petroleum from a licensed area.

The NSTA estimates that there is potential for up to 3.8 trillion cubic feet (tcf) of remaining gas resources within the Southern North Sea (SNS), inclusive of infill opportunities, undeveloped discoveries and prospects.

The development and operation of fields extending beyond the limits of the UKCS, or fields wholly on one or another Continental Shelf which require the development of new transboundary pipeline infrastructure or wells and control facilities.

Companies wishing to become an operator for exploration activities under a production licence on the UK Continental Shelf require approval from the NSTA.

One of the key actions of the Wood Report was that Government and Industry should together create an up-to-date, readily accessible, digital perspective on the prospectivity and geology of the UKCS.