Paragraph 2 Grant of LicenceI1

In consideration of the payments provided for in clause 7 and the performance and observance by the Licensee of all the terms and conditions contained in this licence, the F1OGA, in exercise of the powers conferred by section 3 of the Petroleum Act 1998, hereby grants to the Licensee licence and liberty in common with all other persons to whom the like right may have been granted or may hereafter be granted, during the continuance of this licence and subject to its provisions, to search for Petroleum in the strata in the islands and in the sea bed and subsoil in any area below the low water line in respect of which a licence may be granted under that section 3.

The OGA, in exercise of the powers conferred by section 4 of the Energy Act 2008, and subject to the terms and conditions contained in this licence, authorises the Licensee to explore any controlled place with a view to carrying on activities within section 2(3)(a) to (d) of that Act, and to establish or maintain an installation in a controlled place for the purposes of such exploration.

However, the rights conferred by this licence shall not be exercisable (except with the agreement of the relevant person) at any place in respect of which a petroleum licence or an Energy Act licence is for the time being in force.

In this clause—

• “Energy Act licence” means a licence under section 4 or 18 of the Energy Act 2008 (other than an exploration licence);

• “exploration licence” means a licence to—

  1. (a)

     explore any controlled place with a view to carrying on activities within section 2(3)(a) to (d) of that Act, and establish or maintain an installation in a controlled place for the purposes of such exploration; or

  2. (b)

     explore any controlled place with a view to carrying on activities within section 17(2)(a) or (b) of that Act, and to establish or maintain an installation in a controlled place for the purposes of such exploration.

• “petroleum licence” means a licence (not being a methane drainage licence) entitling the holder to search and bore for and get Petroleum, or to get Petroleum in the course of underground coal gasification;

• “relevant person” means the holder of the petroleum licence or the Energy Act licence.