PRT: royalty - licence payments
PRT Royalty was abolished with effect from 1 January 2003.All property in petroleum in the UK and its continental shelf is vested in the Crown and licences to search for, bore for and get petroleum are granted under the provisions of the Petroleum (Production) Act 1934 as extended by the Continental Shelf Act 1964 and the Petroleum (Production) Act (Northern Ireland) 1964.
Licences have been granted in a series of ‘rounds’ commencing in 1964 and each licence has contained provisions in general for three kinds of payment:
- The initial payment as set out above; this does not form part of the licence debit and credit computation.
- The annual or periodic payment; this is an annual fee not linked to production.
- The royalty: a production linked payment payable half yearly (abolished from 1 January 2003).