{
  "url": "https://openlegislation.uk/petroleum-licensing-production-seaward-areas-regulations-2008/schedule/paragraph-40",
  "json_url": "https://openlegislation.uk/petroleum-licensing-production-seaward-areas-regulations-2008/schedule/paragraph-40.json",
  "legislation": "uksi/2008/225",
  "legislation_title": "The Petroleum Licensing (Production) (Seaward Areas) Regulations 2008",
  "legislation_url": "https://openlegislation.uk/petroleum-licensing-production-seaward-areas-regulations-2008",
  "path": "schedule/paragraph/40",
  "kind": "paragraph",
  "number": "40",
  "heading": "Restrictions on assignment, etc.",
  "text": "(1) The Licensee shall not, except with the consent in writing of the OGA and in accordance with the conditions (if any) of the consent do anything whatsoever whereby, under the law (including the rules of equity) of any part of the European Union or of any other place, any right granted by this licence or derived from a right so granted becomes exercisable by or for the benefit of or in accordance with the directions of another person.\n(2) An agreement permitting the carrying out of geological surveys by physical or chemical means in the Licensed Area is not prohibited by paragraph (1) of this clause if the person by whom such surveys are to be carried out is—\n(a) the holder of a licence granted by the OGA of the right, in common with all other persons to whom the like right may have been granted, to search for Petroleum in respect of an area which would include the Licensed Area, but for a proviso therein excluding the exercise of such right in the Licensed Area without the consent of the Licensee; or\n(b) the holder of a licence granted by the OGA to search and bore for, and get, Petroleum in an area adjacent to the Licensed Area,\nand if the information intended to be obtained by such survey is reasonably necessary to enable that holder more efficiently to exercise the rights granted by the licence which he holds from the OGA.\n(3) The Licensee shall not enter into any agreement providing for a person other than the Licensee to become entitled to, or to any proceeds of sale of, any Petroleum which, at the time when the agreement is made, has not been but may be won and saved from the Licensed Area unless the terms of the agreement have been approved in writing by the OGA either unconditionally or subject to conditions, but the preceding provisions of this paragraph do not apply to—\n(a) an agreement for the sale of such Petroleum under which the price is payable after the Petroleum is won and saved; and\n(b) an agreement in so far as it provides that, after any Petroleum has been won and saved from the Licensed Area, it shall be exchanged for other Petroleum.\n(4) The Licensee shall not, without the consent of the OGA, dispose of any Petroleum won and saved in the Licensed Area or any proceeds of sale of such Petroleum in such a manner that the disposal does, to the knowledge of the Licensee or without his knowing it, fulfil or enable another person to fulfil obligations which a person who controls the Licensee, or a person who is controlled by a person who controls the Licensee, is required to fulfil by an agreement which, if the person required to fulfil the obligations were the Licensee, would be an agreement of which the terms require approval by virtue of paragraph (3) of this clause; and for the purposes of this paragraph, whether a person has control of another person is to be determined as if sections 450(2) to (4) and 451(1) to (5) of the Corporation Tax Act 2010 apply subject to the following modifications—\n(a) for the words “the greater part” wherever they occur in section 450(3), there are substituted the words “one-third or more”;\n(b) in section 451(4) and (5), for the word “may”, there is substituted the word “must”; and\n(c) in section 451(4) and (5) any reference to an associate of a person is to be construed as including only—\n(i) a relative (as defined in section 448(2) of that Act) of the person;\n(ii) a partner of the person; and\n(iii) a trustee of a settlement (as defined in section 620 of the Income Tax (Trading and Other Income) Act 2005) of which the person is a beneficiary.\n(5) Where the Licensee is two or more persons, then, without prejudice to the preceding provisions of this clause, none of those persons shall enter into an agreement with respect to the entitlement of any of them to—\n(a) the benefit of any right granted by this licence; or\n(b) any Petroleum won and saved from the Licensed Area; or\n(c) any proceeds of sale of such Petroleum,\nunless the terms of the agreement have been approved in writing by the OGA, but the preceding provisions of this paragraph do not apply to an agreement for the sale, or for the proceeds of such sale, of such Petroleum under which the price is payable after the Petroleum is won and saved and an agreement in so far as it provides that, after any Petroleum has been won and saved from the Licensed Area, it shall be exchanged for other Petroleum.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Word in Sch. clause 40 substituted (1.10.2016) by The Energy (Transfer of Functions, Consequential Amendments and Revocation) Regulations 2016 (S.I. 2016/912), regs. 1(1), 13(40)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in Sch. clause 40(4) substituted (15.9.2017) by The Petroleum and Offshore Gas Storage and Unloading Licensing (Amendment) Regulations 2017 (S.I. 2017/855), regs. 1, 2(15) (with reg. 2(17))"
    },
    {
      "type": "I",
      "label": "I1",
      "text": "Sch. clause 40 in force at 6.4.2008, see reg. 1(1)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2008/225/schedule/paragraph/40",
    "retrieved_at": "2026-10-29T03:37:12.844695+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}