A new licence and new rounds

THE GOVERNMENT introduced a new type of petroleum licence last month, at the same time as throwing open the UK's 21st offshore licensing round and its 11th onshore round. The new Promote licence designed to encourage smaller firms to participate in offshore exploration offers a sharply reduced licence fee for two years. It was introduced following consultation last year under the Pilot government-industry initiative. The Promote licence gives the holder two years to assess the licence area and to promote the asset to potential investors which, the licensee hopes, will agree to finance the cost of drilling work. For the two-year period, the annual rental is £15 ($24.65) per square km 90% less