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The Petroleum E-business Assignments and Relinquishment System (PEARS) is the NSTA’s portal-based licence administration system.

Security over licences

It is common practice for banks lending money to companies to demand a charge on the company’s assets as a form of collateral.

Licensing regime

The Petroleum Act 1998 vests all rights to the nation’s petroleum resources in the Crown, but the North Sea Transition Authority can grant licences that confer exclusive rights to ‘search and bore for and get’ petroleum.

Licence assignments

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.

Operatorship

The licence model clauses oblige the licensee to nominate an entity that has responsibility for organising or supervising all or any of the operations of searching or boring for or getting petroleum in pursuance of the licence, namely:

Change in control

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.

Overview - Licensing and Consents

Licences fall into several categories. The principal distinctions are between onshore licences and offshore licences, with a further distinction between exploration licences.

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