The following Energy guidance note Produced in partnership with Giulia Carloni provides comprehensive and up to date legal information covering:
A typical oil and gas project can be divided into four key stages:
exploration/appraisal—when a company will look for oil/gas and determine if the project is economically feasible
development—this phase commences once the project has been appraised as economically viable, and therefore the relevant infrastructure to search for and get the oil/gas out of the ground must be constructed
production—during this stage, oil/gas is produced and sold; and
abandonment—when the company proceeds to its plugging and abandoning operation, which takes place once the economics are no longer sustaining the project as a whole
For more details on the typical agreements seen in the UK upstream oil and gas projects, see Practice Note: Upstream Oil and Gas Agreements on the UKCS.
The exploration phase is arguably the most critical within the cycle of an upstream petroleum project, given that the oil and gas operator will determine, during the appraisal stage, whether the project is ultimately commercially viable and therefore should proceed to the development phase or if it should come to a halt.
To do this, an oil and gas producer will require a number of specialist services to be undertaken by third party contractors, all generally aimed at assessing the likelihood of finding oil/gas in the concession area as well as determining where
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234