| Details: | PILOT Chair announces new measures to ease entry of new players into burgeoning North Sea market to a global audience
UK oil and gas companies, working jointly with the Department of Trade and Industry through the government industry partnership PILOT, have agreed a new commercial and legal framework to speed up the transfer of North Sea assets and pave the way for new entrants, it was announced today (5 May).
UK Energy Minister and PILOT chair, Brian Wilson, speaking at the world's largest oil and gas industry event - the Offshore Technologies Conference in Houston - confirmed that the new framework, set out in a "Master Deed" for use across the sector came into force at the end of April.
Mr Wilson said:
"The new Master Deed is a very positive development for the North Sea and I know it is the result of much hard work by members of PILOT's Progressing Partnership Working Group and other representatives of the industry.
"This Deed will standardise and speed up transfers and make for a more efficient commercial environment.
"Today's announcement is another success for PILOT in creating the right environment to encourage new entrants into what is still a vibrant North Sea market."
The first major deal to benefit from the use of the new transfer arrangements will be the sale by BP of its Southern North Sea Bacton assets to Perenco.
The Deed creates a mechanism which will simplify the complex and time-consuming procedures currently involved in the sale and purchase of offshore assets in the UK Continental Shelf (UKCS). It also modifies and limits certain existing rights of pre-emption which effectively give the present co-owners of UKCS assets a right of first refusal on the disposal of any part of such asset.
Bruce Dingwall, chief executive of Venture Production plc and PILOT member, said:
"The offshore oil and gas industry has long recognised that the commercial and legal structure underpinning the UK licence holding system is a barrier for entry to new companies and the effective working of market transfers.
"As the UKCS matures, it is becoming increasingly important to promote access to the remaining exploration and development opportunities. Implementation of the Master Deed will cut through red tape and speed up asset sales, reducing legal and administrative costs. It is a significant step forward and one which will help maximise the economic recovery of remaining UK reserves."
The scheme is administered by UKCS Administrator Ltd, a newly created subsidiary of the UK Offshore Operators Association. LOGIC, the Aberdeen-based organisation promoting industry competitiveness, has been appointed to act on behalf of the Administrator in executing agreements under the terms of the Master Deed. |
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