{"id":175,"date":"2026-03-05T08:29:15","date_gmt":"2026-03-05T08:29:15","guid":{"rendered":"https:\/\/www.gov.fk\/mineralresources\/?page_id=175"},"modified":"2026-03-11T12:01:27","modified_gmt":"2026-03-11T12:01:27","slug":"production-licences","status":"publish","type":"page","link":"https:\/\/www.gov.fk\/mineralresources\/offshore\/production-licences\/","title":{"rendered":"Production Licences"},"content":{"rendered":"\n
Home<\/a><\/span> \u00bb Offshore<\/a><\/span> \u00bb Production Licences<\/span><\/span><\/div><\/div>\n\n\n\n
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Production Licences<\/h1>\n\n\n
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Applications<\/h2>\n\n\n\n

Falkland Islands Government are not currently receiving applications for Offshore Production Licensing, in accordance with Offshore Petroleum (Licensing) Regulations 2000 (regulation 3A (1)) suspension of regulations 4-7 and pursuant to the ‘Suspension Notice’ published in the Gazette dated 9th September 2005.<\/p>\n\n\n\n

The current active production license status as of March 2025, including phase expiry dates can be downloaded here:<\/p>\n\n\n\n

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Production License Status<\/a>Download<\/a><\/div>\n\n\n\n

Updated March 2025<\/em><\/p>\n\n\n\n

All exploration areas and past licences are available on\u00a0<\/strong>the Offshore Maps<\/a>\u00a0page.<\/p>\n<\/div>\n\n\n\n

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Purpose<\/h2>\n\n\n\n

Production licences permit the search for and extraction of petroleum.<\/p>\n\n\n\n

They are area-specific and provide exclusive rights for surveying, drilling and production within that area.<\/p>\n\n\n\n

Although the licence permits extraction of hydrocarbons, approval must be sought for any development plan before commercial production commences.  FDP Guidance is available on Regulation – Guidance<\/strong> page<\/p>\n<\/div>\n\n\n\n

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Current production licencees<\/h2>\n\n\n\n

Borders and Southern Petroleum plc<\/strong><\/a><\/p>\n\n\n\n

Rockhopper Exploration plc<\/strong><\/a> (and subsidiary companies Falkland Oil & Gas Ltd and Desire Petroleum Ltd<\/em>)<\/p>\n\n\n\n

Navitas Petroeum Development and Production Limited<\/a><\/strong><\/p>\n\n\n\n

JHI Falklands Inc<\/a><\/strong><\/p>\n\n\n\n

Previous operators have included Edison International, Noble Energy Falklands Ltd., Shell, Amerada Hess, BHP Billiton, Lasmo and IPC\/Lundin Oil, Argos, together with their respective partners.<\/p>\n<\/div>\n\n\n\n

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Operatorship<\/h2>\n\n\n\n

The licence holders must appoint an operator acceptable to the Governor.<\/p>\n\n\n\n

The operator must organise, supervise and be responsible for all activities.<\/p>\n\n\n\n

The operator is not allowed to commence any survey or commence, abandon or recommence the drilling of or completion for development of any well without the consent of the Governor. Such consents are obtained by completion of the relevant operations notices, downloadable below.<\/p>\n\n\n\n

Good oilfield practices must be observed at all times.<\/p>\n\n\n\n

Licence holders must comply with additional conditions to the licences as detailed in Petroleum Operations Notices issued from time to time by the Government.<\/p>\n<\/div>\n\n\n\n

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Situations requiring an additional exploration licence<\/h2>\n\n\n\n

Production licence holders require an exploration licence to conduct work outside the geographical limits covered by any of their production licences, but do not require an exploration licence to conduct work themselves within the production licence’s geographical limits.<\/p>\n\n\n\n

However, should the production licence holder appoint a third party contractor to acquire exploration data on their behalf within the area covered by the production licence, the contractor must hold an exploration licence in their own right.<\/p>\n<\/div>\n\n\n\n

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Other general conditions applicable to production licences<\/h2>\n\n\n\n

No licence or interest in a licence may be assigned without the permission of the Governor.<\/p>\n\n\n\n

Applications are welcomed from companies and consortia worldwide. No preference or discrimination will be made for or against any applicant.<\/p>\n\n\n\n

All applications will be appraised on a technical and financial basis by the Department of Mineral Resources.<\/p>\n\n\n\n

Whilst the participation of Argentine oil companies is welcomed and considered desirable by the Falkland Islands Government, it is unlikely that an award would be made to any applicant group comprising more than 49% Argentine interests, or with an Argentine registered operator.<\/p>\n<\/div>\n\n\n\n

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Data requirements<\/h2>\n\n\n\n

Production licence regulations require the holder to supply copies of all data to the Governor (or more usually to the British Geological Survey). See Regulation – Data Management<\/strong> page for further details<\/p>\n\n\n\n

All data will be held in confidence by the Falkland Islands Government for a period of 5.5 years but may then be released to the public.<\/p>\n<\/div>\n\n\n\n

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Current types of Production licencing<\/h2>\n\n\n\n

Production licences fall into two types:<\/p>\n\n\n\n

Competitive round production licences \u2013 issued as a result of a competitive bidding process in 1996<\/p>\n\n\n\n

Open-door production licences \u2013 issued as a result of individual negotiation since 2001.<\/p>\n\n\n\n

Please note that any future licensing may introduce an alternative production licence with amended model clauses.<\/p>\n\n\n\n

The terms and conditions of the two current types of production licences are summarised in the table below.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Licence type\/summary of terms:<\/p>\n\n\n\n

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How to apply<\/strong><\/div>
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Competitive round production licences<\/strong><\/h3>\n\n\n\n

Issued only as the result of invited, competitive bidding during well-defined licensing rounds.<\/p>\n\n\n\n

Applications will not be accepted outside licensing rounds except in the case of acreage that has been relinquished.<\/p>\n\n\n\n

The opening of any further licence round competitions will be announced in the Falkland Islands and London Gazettes and will be advertised in the trade press.<\/p>\n<\/div>\n\n\n\n

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Open-door production licences<\/strong><\/strong><\/h3>\n\n\n\n

Bids for open-door production licences are currently closed but can be made for any number of whole blocks (12′ longitude by 10′ latitude) up to a total of 30 contiguous blocks in any one licence. The applicant is free to determine the size and shape of the area bid for. There is no limit to the number of licences (each of up to 30 blocks) that can be applied for at any time.<\/p>\n\n\n\n

Bids will be opened at midday Stanley time on the last working day of each month. Decisions regarding applications will be made as soon as possible. In addition to a completed application form, companies will need to provide full details of their fiscal and technical records and their environmental and health and safety policies.<\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n

Work programmes<\/strong><\/strong><\/div>
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Competitive round production licences<\/strong><\/h3>\n\n\n\n

The entire Phase 1 work commitments for all existing production licences issued in 1996 have been completed, or alternative (completed) programmes sanctioned by the Government.<\/p>\n<\/div>\n\n\n\n

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Open-door production licences<\/strong><\/strong><\/h3>\n\n\n\n

A work programme will be acceptable only if it contains one or more of the following elements:acquisition of geochemical ‘sniffer’ – type surveyacquisition of aeromagnetic surveyacquisition of set of sea-bed cores testing the stratigraphy of the feather edges of presently unexplored basins or sub-basinsacquisition and processing of 2D and 3D seismic datathe drilling of one or more exploration wells.Desk studies and the acquisition of presently available datasets, whether proprietary or non-exclusive, will not be regarded as acceptable work commitments, and production licences will not be issued for such work.<\/p>\n\n\n\n

Successful applicants for open-door production licences would be expected to comprehensively acquaint themselves with any existing datasets available for the licence area.<\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n

Exploration Phase 1<\/strong><\/strong><\/strong><\/div>
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Competitive round production licences<\/strong><\/h3>\n\n\n\n

The first exploration phase was for five years. However, this initial exploration period was extended in 2000, to provide additional years during the first phase.<\/p>\n\n\n\n

There is a 50% relinquishment of acreage at the end of the first phase. However, as well as the 50% retained automatically, an additional 10% can be retained for each of the first three exploration wells drilled within the first phase. Relinquishment obligations may be subject to negotiation.<\/p>\n<\/div>\n\n\n\n

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Open-door production licences<\/strong><\/strong><\/h3>\n\n\n\n

Phase 1 of the open-door licences is for 3, 5, 6 or 8 years, depending on the work programme commitment as outlined below:<\/p>\n\n\n\n

a) acquisition of 2D seismic data appropriate to the size of the licence area, plus associated exploration activity – 3 years;<\/p>\n\n\n\n

b) acquisition of 2D seismic data appropriate to the size of the licence area, plus associated exploration activity, plus acquisition of 3D seismic data of appropriate size to the size of the licence – 5 years;<\/p>\n\n\n\n

c) acquisition of 2D seismic data appropriate to the size of the licence area, plus associated exploration activity, plus drilling at least one well – 6 years;<\/p>\n\n\n\n

d) acquisition of 2D seismic data appropriate to the size of the licence area, plus associated exploration activity, plus acquisition of 3D seismic data of appropriate size to the size of the licence, plus drilling at least one well – 8 years.<\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n

Exploration Phase 2<\/strong><\/strong><\/strong><\/div>
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Competitive round production licences<\/strong><\/h3>\n\n\n\n

Phase 2 is seven years.<\/p>\n\n\n\n

It allows for completion of the work programme specified in the original licence application. Additionally, entry to the second phase includes a commitment to drill during the seven years.<\/p>\n\n\n\n

There is a 50% relinquishment of remaining acreage at the end of the second phase.<\/p>\n<\/div>\n\n\n\n

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Open-door production licences<\/strong><\/strong><\/h3>\n\n\n\n

Phase 2 is for five years.<\/p>\n\n\n\n

There is an automatic 50% relinquishment of the licensed area before Phase 2 can be entered.<\/p>\n\n\n\n

Entry to Phase 2 is on a drill or drop basis and will therefore require a commitment to drill one or more exploration wells.<\/p>\n\n\n\n

All the area must be surrendered at the end of Phase 2, unless a discovery has been made and plans are in place to appraise or develop it.<\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n

Exploration Phase 3<\/strong><\/strong><\/strong><\/div>
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Competitive round production licences<\/strong><\/h3>\n\n\n\n

Phase 3 is ten years.<\/p>\n\n\n\n

It allows for further exploration and appraisal drilling. Entry to the third exploration phase requires a renewed drilling commitment on the exploration acreage, and is therefore also on a drill or drop basis.<\/p>\n<\/div>\n\n\n\n

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Open-door production licences<\/strong><\/strong><\/h3>\n\n\n\n

This does not apply to open-door licences.<\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n

Discovery area<\/strong><\/strong><\/strong><\/strong><\/div>
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Competitive round production licences<\/strong><\/h3>\n\n\n\n

This does not apply to competitive round licences.<\/p>\n<\/div>\n\n\n\n

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Open-door production licences<\/strong><\/strong><\/h3>\n\n\n\n

If a discovery is made at any time during either Phase 1 or Phase 2, a ‘Notification of Discovery’ should be made to the Governor.<\/p>\n\n\n\n

The geological structure, or the aerial extent of the stratigraphic play containing the discovery will then be set aside as a ‘Discovery Area’, and will not count as part of the exploration or relinquishment schedule for the remainder of Phases 1 or 2 as appropriate.<\/p>\n\n\n\n

A ‘Discovery Area’ can be held for five years from the date of spudding of the discovery well, to allow time for appraisal drilling and\/or the submission, for the Govenor’s approval, of a development plan.<\/p>\n\n\n\n

However, either appraisal drilling or the submission of a development plan must commence within three years of the date of a discovery, or the licensee’s interests in the ‘Discovery Area’ will be forfeited.<\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n

Acreage rentals<\/strong><\/strong><\/strong><\/strong><\/strong><\/div>
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Competitive round production licences<\/strong><\/h3>\n\n\n\n

Variable according to phase of licence<\/p>\n<\/div>\n\n\n\n

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Open-door production licences<\/strong><\/strong><\/h3>\n\n\n\n

Variable according to phase of licence<\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div>\n\n\n\n

<\/div>\n\n\n\n
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For more information, please contact
the Department of Mineral Resources<\/h2>\n\n\n\n

You\u2019ll find our office hours, location, and full contact details below.<\/p>\n\n\n\n

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Contact us<\/a><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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