118Rights conferred by petroleum retention lease

118 Rights conferred by petroleum retention lease

(1) A petroleum retention lease authorises the lessee, in accordance with the conditions (if any) to which the lease is subject—

(a) to explore for petroleum in the lease area; and

(b) to recover petroleum on an appraisal basis in the lease area; and

(c) to carry on such operations, and execute such works, in the lease area as are necessary for those purposes.

(2) Express references in this Act to the injection or storage of a substance do not imply that subsection (1) does not operate so as to authorise the lessee—

(b) to carry on operations to store (whether on a permanent basis or otherwise) a substance in the seabed or subsoil of the offshore area.

(3) The regulations may provide that a petroleum retention lease authorises the lessee, in accordance with the conditions (if any) to which the lease is subject—

(a) to explore in the lease area for a potential greenhouse gas storage formation; and

(b) to explore in the lease area for a potential greenhouse gas injection site; and

(c) to carry on such operations, and execute such works, in the lease area as are necessary for those purposes.

(4) The rights conferred on the lessee by or under subsection (1) or (3) are subject to this Act and the regulations.