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The Crown (through the Petroleum Act 1998) holds all title and
rights to oil reservoirs within the UK and its territorial waters.
DECC (on behalf of the Crown) has the power and discretion to
grant licences to persons deemed fit to search for and extract oil
and to further distribute and sell such oil in the market.

What is the general character of oil exploration and
production activity conducted in your country.
Are areas off-limits to exploration and production! UK
oil exploration and production activity is predominantly conducted
offshore. Such activities are regulated by a licensing regime. Each
licence covers a particular area, and there are separate licensing
regimes for onshore and offshore exploration and production
activities. Such activities (whether onshore or offshore) can be
restricted for environmental, conservation or military reasons.
DECC is required to carry out a strategic environmental
assessment on areas proposed to be licensed to examine the impact
of such activities on the environment.

What government body regulates oil exploration and
production in your county!
How are rights to explore and produce granted! What is
the procedure for applying to the government for such rights!
DECC is the government body responsible for the regulation of oil
exploration and production activities in the UK. Regulation is by a
licensing regime rather than a production sharing arrangement.
Applications for a licence are made (either individually or through
a joint venture) to DECC as part of a formal annual licensing
round that is advertised online and in the European Journal. All
applications are made in a prescribed form and companies
applying for a licence must be registered in the UK, either as a
company or as a branch of a foreign company (see question 16).
The timing for the application will vary depending on the size of
the licensing round. In the simplest case (out-of-round with no

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