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Figure 5.6 - Graphic dependencies oil recovery and water
cut from τ

§6 CONTROL AND REGULATION OF
OIL FIELD DEVELOPMENT

Regulation overview.
Describe the key laws and regulations that make up the
general legal framework regulating oil activities. Are there any
legislative provisions that allow for expropriation of a licensee‟s
interest and, if so, under those conditions
The Petroleum Act 1998 governs oil and gas exploration
and production activities in the UK. This Act vests ownership of
petroleum in the UKCS in the Crown and empowers the secretary
of state for DECC to grant licences for the exclusive right to
search for, bore for and extract petroleum in the area covered by
the licence. Licences are acquired through competitive licensing
rounds held each year by DECC. A company will make (either by
itself or as part of a joint venture) an application for a specific
area. Licences may also be acquired through asset transfers
between companies, and the consent of DECC is required prior to

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