VATLP02710 | Supply: place of supply and liability of exploration and production licences in the UK oil industry: background

The Petroleum Act 1998 gives the Crown rights to search, bore and extract petroleum (including oil and natural gas) within Great Britain.

The Crown can grant an exploration or production licence through the Secretary of State for Business, Innovation and Skills. The licence cannot be sold, transferred or assigned without the consent of the Secretary of State.