A seaward production licence may be extended for a further period after its expiry date, upon request of the licensee, to allow producing fields to fully exploit the associated reserves.

A licence will automatically cease and determine upon the expiry of the duration set out in model clause titled ‘Term of Licence’.  The licensee may submit a written notice to the NSTA requesting an extension for a further period; in some licences this is contemplated in the model clause titled ‘Power further to extend term of Licence’.  

The NSTA will evaluate the application for a licence extension in accordance with its Central Obligation as outlined in the OGA Strategy. Early engagement with the NSTA is recommended and formal contact should be made in advance to ensure a thorough process. 

The NSTA will not extend a licence until it is clearly necessary, so licensees expecting to need an extension should formally inform the NSTA 12 months before the licence’s expiry date.  

The NSTA may request an update to the Field Development Plan, amongst other documentation. In addition, the applicant should note that the extension, if granted, will remove all acreage from the licence other than that related to the currently producing field(s) or discoveries where there is a clear route for first production.  The extension for producing fields will continue, subject to the provisions within the extension. 

*On 26 November 2025, the UK Government issued the North Sea Future Plan, its response to a consultation. This stipulates that no new licences will be granted in new fields, but allows for the introduction of Transition Energy Certificates (TECs) in adjacent areas to existing fields. Legislation is expected to now be introduced to provide long term clarity. While current legislation remains in place, the NSTA will continue to collaborate with the government, which has a stated policy that the NSTA will need to consider.

The government policy does not preclude the granting of ‘licence extensions’ that extend the duration, term or phase applicable to previously awarded licences of any kind, nor the ‘assignment’ (transfer) of previously awarded licences or licence equity of any kind between parties.

As normal, licensees should make any licence term deadline extension requests to the NSTA in writing at the earliest opportunity, and in any event not less than three months before the end of the relevant term/phase of the licence.