OT13570 - PRT: Foreign Fields - E&A - Designated Area - Transmedian Fields

In addition to the allowance of exploration and appraisal expenditure incurred in the territorial sea of the United Kingdom, OTA75\S5A(2) provides for the allowance of such expenditure incurred in a “designated area” as defined in the Continental Shelf Act 1964. From 1980 foreign sectors of transmedian fields were deemed to be designated areas for this purpose (FA80\S107(3)(b)). However, in relation to exploration and appraisal expenditure incurred on or after 19 March 1985, FA85\S90(3) (now OTA75\S5A(2A)) provides that relief does not extend to such expenditure incurred in a sector which is deemed to be a designated area.