Committee for the Economy

Report on the Committee Stage of the Petroleum Exploration and Licensing (Repeal) Bill

Report on Committee Stage of the Petroleum Exploration and Licensing (Repeal) Bill.pdf (440.82 kb)

This report is the property of the Committee for the Economy. 

Ordered by the Committee for the Economy to be published on 7 October 2026

Report: NIA 195/22-27 Committee for the Economy

Powers and Membership                                            

Powers

1.The Committee for the Economy is a Statutory Departmental Committee established in accordance with paragraphs 8 and 9 of Strand One of the Belfast Agreement and under Assembly Standing Order No 48. The Committee has a scrutiny, policy development and consultation role with respect to the Department for the Economy and has a role in the initiation of legislation.

2. The Committee has power to:

• consider and advise on Departmental budgets and Annual Plans in the context of the overall budget allocation;
• approve relevant secondary legislation and take the Committee Stage of relevant primary legislation;
• call for persons and papers;
• initiate enquiries and make reports; and
• consider and advise on matters brought to the Committee by the Minister for the Economy.

Membership

3, The Committee has nine Members, including a Chairperson and Deputy Chairperson, and a quorum of five Members. The membership of the Committee is as follows:

Mr Phillip Brett MLA (Chairperson)

Ms Diane Forsythe MLA (Deputy Chairperson)[1]

Mr Pádraig Delargy MLA

Mr David Honeyford MLA

Mr Declan Kearney MLA[2][3][4]   

Mr Peter Martin MLA[5]

Ms Sinéad McLaughlin MLA

Mr Mike Nesbitt MLA[6][7][8][9]

Ms Kate Nicholl MLA[10]

Executive Summary                                                       

4. The Committee for the Economy undertook the Committee Stage of the Petroleum Exploration and Licensing (Repeal) Bill. The Committee noted that the Department’s assurances that the Bill’s provisions are designed to introduce an effective ban on the issuing licences for all forms of onshore petroleum exploration and production in Northern Ireland. The Committee noted the Department’s further assurance that this includes all of the different techniques for accessing petroleum including fracking.

5. The Department assured the Committee that petroleum resources will remain vested in the Department and that it reserved the right to initiate civil and/or criminal enforcement action against any person who interferes with and/or releases the petroleum by way of boring or conducting activities on land which might result in its release. 

6. The Committee considered a range of matters including: the need for explicit prohibitions; the vesting of petroleum resources; and the refund of application fees.

7. The Committee accepted the assurances and clarifications from the Department, and agreed that it would not bring forward amendments to the Bill.

Background                                                                    

8. The Department for the Economy is responsible for granting licenses to “explore for, bore and get petroleum” in Northern Ireland in line with the Petroleum (Production) Act (Northern Ireland) 1964 and amending regulations. According to the Department, all of onshore NI was available for petroleum licence applications; and such applications were considered on a “first come, first served” basis.

9. In 2011, the then Department of Enterprise Trade and Investment granted four petroleum exploration licences in NI. The granting of these licenses, and subsequent developments related to the use of those licenses, led to community and political opposition. This opposition was particularly focussed on the license granted to Tamboran Resources Pty Limited, which covered parts of County Fermanagh.

10. In August 2014, the then Minister for the Environment rejected a planning application by Tamboran Resources to drill an exploratory borehole in County Fermanagh. In October 2014, the company’s license was terminated.

11. Subsequently, in September 2015, the “Strategic Planning Policy Statement – Planning for Sustainable Development” (SPPS) was published by the former Department of the Environment. That Statement indicated that…in relation to unconventional hydrocarbon extraction there should be a presumption against their exploitation until there is sufficient and robust evidence on all environmental impacts. The SPPS established a “presumption against” unconventional hydrocarbon extraction in general, not hydraulic fracturing in particular. Additionally, the presumption against unconventional hydrocarbon extraction is to exist “until there is a sufficient and robust evidence on all environmental aspects”.

12. In 2020 the Department for the Economy initiated a review of the onshore petroleum licensing system. The Department commissioned independent research into the economic, social and environmental impacts of petroleum exploration and production in Northern Ireland. The research concluded that onshore petroleum exploration and production would not bring significant benefits to the local economy, was unlikely to reduce oil and gas prices and could have negative social and environmental impacts.

13. Additionally, the Climate Change Act (Northern Ireland) 2022 placed a duty on all departments in exercising their own functions, so as far as is possible, to do so in a manner which is consistent with achieving net zero by the 2050 target. One of the five key principles in the 2021 Department for the Economy’s Energy Strategy was to replace fossil fuels including petroleum with renewable energy.

14. The Department for the Economy advised in 2024 that there were no active petroleum licences in NI. However the Department was considering two applications. One application was for the Lower Lough Neagh area and the other was focused on County Fermanagh. Neither of those applications “currently propose …. hydraulic fracturing”, as noted by the then Minister for the Economy in 2022.  Additionally, the consultation documents relating to those applications noted that, should an application be granted: Before an oil well and all the associated engineering works can be drilled, including fracking, the Licensee must make a Planning Application accompanied by an Environmental Impact Statement (EIS) and wide-ranging public and governmental consultation and assessment of the all the relevant environmental, engineering, economic and social issues. 

15. The then Minister for the Economy appeared to indicate on 29 April 2024 that such petroleum exploration and/or extraction applications would not be processed by the Department.   The current Minister for the Economy indicated that the Executive had agreed in December 2024 to introduce a temporary moratorium on petroleum licensing and since then no further applications for petroleum licences have been accepted or processed. She further indicated that she was to introduce the Petroleum Exploration and Licensing (Repeal) Bill to the Assembly with a view to banning all forms of onshore petroleum exploration and development in Northern Ireland including the two current applications.

16. Section 1(1) of the Petroleum Act 1964 vested rights to petroleum found in Northern Ireland strata to the former Ministry of Commerce (the Ministry). Section 1(3) of the Petroleum Act 1964 empowered the Ministry with the “exclusive right of searching and boring for and getting” that petroleum. That power was further qualified by Section 1(4) of the Petroleum Act 1964, which defined “strata in Northern Ireland” as including: …strata beneath the internal waters adjacent to Northern Ireland, but does not include strata beneath the territorial sea of the United Kingdom adjacent to Northern Ireland (beyond the low tide line).” Beyond that, rights are vested in the Crown as per section 2(2) of the Petroleum Act 1998, with licensing responsibilities falling to the North Sea Transition Authority.

17. The Petroleum Exploration and Licensing (Repeal) Bill was described as introducing a ban on issuing licences for all forms of onshore petroleum exploration and production in Northern Ireland through amendments to The Petroleum (Production) Act (Northern Ireland) 1964 and related amending regulations. The Department contended that the Bill would ensure that it will not be possible for individuals or companies to explore for or produce oil and gas in the onshore area of Northern Ireland. The Department contended that this includes not only all forms of oil and gas but also all of the different techniques for accessing these resources including hydraulic fracturing also known as fracking.

Committee Approach

18. The Petroleum Exploration and Licensing (Repeal) Bill was introduced at the Assembly by the Minister for the Economy on 13 April 2026.  The Second Stage was completed and the Committee Stage commenced on 27 April 2026. The Assembly agreed to extend the Committee Stage to 30 October 2026.

19. The Committee launched a call for evidence on 29 April 2026 which closed on 24 June 2026. The Committee wrote to key stakeholders, and inserted public notices in the Belfast Telegraph, Irish News, and News Letter to seek written evidence on the Bill. The Committee received 12 responses. These were from a mix of individuals and stakeholder organisations. Written responses from those who consented to publication are included in Appendix 3.

20. During the period covered by this report, the Committee considered the Bill, alongside the accompanying Explanatory and Financial Memorandum across 7 meetings. Minutes of Proceedings are included in Appendix 1. Throughout its consideration of the Bill, the Committee sought clarification on the intent, application, and proportionality of the proposed powers, and explored how issues raised during the call for evidence might be addressed through the Bill itself and the supporting statutory guidance.

21. At its meeting on 22 April 2026, the Committee received an oral briefing from the Northern Ireland Assembly Research and Information Service (RaISe) on its Bill Paper. The Bill Paper was provided to all Assembly Members, providing research on the content and implications of the Bill  and is appended.

22. Members of the Committee held an informal engagement event at the Balmoral Show on 13 May 2026, to gather views on the Bill.

23. The Committee also considered a Convention Rights Memorandum from the Northern Ireland Assembly Legal Services (20 May 2026), providing written information on the interaction between the Bill and the European Convention on Human Rights (ECHR) and Article 2(1) of the Windsor Framework.

24. The Committee took oral evidence on the Bill from Letterbreen and Mullaghdun Partnership (LAMP) on 9 September 2026.

25. The Committee deliberated informally and undertook informal clause by clause scrutiny of the Bill on 23 September 2026 with the Department for the Economy.  

26. The Committee considered advice from the Examiner of Statutory Rules on the delegated powers in the Bill.

27. Formal Clause by Clause scrutiny of the Bill took place on 30 September 2026.

28. The Committee considered a draft report of the Committee Stage at its meeting of 7 October 2026 and ordered that the report (i.e. this report) should be published.

29. Minutes of Proceedings are at Appendix 1. The Minutes of Evidence are included at Appendix 2. Written submissions are included at Appendix 3. Written submissions from the Department are at Appendix 4. Relevant research and other papers are at Appendix 5. A list of witnesses to the Committee Stage is given at Appendix 6.

Overview of the Bill

30. The Bill, as drafted, contains six clauses and no schedules. Its Long Title states that it is to “repeal provisions in the Petroleum (Production) Act (Northern Ireland 1964 relating to petroleum exploration and licensing; and for connected purposes.

Clause 1 -  Principal set of repeals 

31. This clause was described as amending the 1964 Act to remove the Department’s power to grant licences for all forms of onshore petroleum exploration and production in Northern Ireland.  It also was described as removing the Department’s right to search and bore for, and get petroleum.  The clause repeals provisions in the 1964 Act that relate to the licensing regime and the Department’s power to explore for petroleum.

Clause 2 - Transitional provision

32. The Department advised that this clause would deem that live applications for licences are simply to be treated as withdrawn by the applicants.  It was indicated that the clause enables the Department, at its discretion, to provide a refund (partial or whole) to the applicants for the fee paid in relation to the application, including an amount for interest. 

Clause 3 - Consequential provision

33. This clause makes consequential repeals to legislation referring to the licensing regime being repealed by the Bill and revokes regulations that relate to the licensing regime. 

Clause 4 - Ancillary regulations

34. This clause enables the Department to make regulations in relation to the outcome intended by the Bill. Some of these regulations will be subject to draft affirmative procedure at the Assembly. 

Clause 5 – Commencement

35. The clause provides for the commencement of the Bill immediately after Royal Assent is secured.

Clause 6 – Short title

36. This clause provides for the short title of the Bill. 

Consideration of the Bill

37. The Committee's consideration of the clauses of the Bill was informed by the research, written and oral evidence it received. The Committee had ongoing engagement with Departmental officials throughout its consideration of the Bill and explored the issues raised in evidence during Departmental oral evidence sessions and by correspondence.

38. The Committee noted that those that had responded to the call for evidence indicated general support for the Bill’s intention to prevent petroleum exploration and production and achieve net zero. A limited number of issues were raised during the Committee’s consideration. These are discussed, clause by clause, below.  

Clause 1: Principal set of repeals

Prohibition

39. LAMP argued that the Bill should be amended to expressly prohibit petroleum licensing, exploration and extraction, rather than relying on a repeal of the Department existing powers to grant related licenses. LAMP suggested that the wording of Clause 1 be amended to;

“No public authority or person may grant, hold, transfer, exercise or benefit from any licence, permit, consent or authorisation relating to the exploration, appraisal, development, production or extraction of petroleum within Northern Ireland."

40. The Department contended that the Bill removes the framework for licensing exploration and extraction for all forms of onshore petroleum exploration and production in Northern Ireland. The Department also advised that it would retain the right to initiate civil and/or criminal enforcement against those conducting activities on land, including boring, which might result in the release of petroleum that might exist underneath the ground.  Thus it was argued that an explicit ban was not required as the Bill would have essentially the same effect.

41. The Committee accepted the Department’s assurance and agreed that it would not bring forward related amendments.

Fracking

42. LAMP and other stakeholders argued that the Bill should be amended to include an explicit statutory prohibition on hydraulic fracturing, as well as other unconventional petroleum extraction techniques. Further to this, LAMP suggested that the Bill should be amended in line with the Section 5B of the RoI Petroleum and Other Minerals Development Act 1960, as amended by the Petroleum and Other Minerals Development (Prohibition of Onshore Hydraulic Fracturing) Act 2017, which provides:

"Notwithstanding anything in this Act or any other enactment or rule of law it shall not be lawful for a person to search for, get, raise, take, carry away or work petroleum by means of hydraulic fracturing."

43. The Department countered that the Bill removes the statutory powers and licensing framework for all forms of onshore oil and gas exploration and development and this includes hydraulic fracturing (also known as fracking). Therefore, the Department advised that it did not consider it necessary to include a separate provision to ban fracking.

44. The Committee accepted the Department’s assurance and agreed that it would not bring forward related amendments.

Control of petroleum resources

45. LAMP argued that the Bill should be amended to ensure that Northern Ireland retains exclusive control over petroleum resources, whilst simultaneously prohibiting exploitation.

46. The Department advised that Section 1(1) of the Petroleum (Production Act (Northern Ireland) 1964 is not being repealed. Consequently the property in petroleum existing in its natural condition, in strata, in Northern Ireland would remain vested in the Department and thus an additional explicit provision is not required.

47. The Committee accepted the Department’s assurance and agreed that it would not bring forward related amendments.

Windsor Framework / Cross-Border Arrangements

48. LAMP also argued that the Bill should be amended to reflect the Windsor Framework and Northern Ireland’s related and distinctive position in respect of the European Union and the continuing importance of maintaining stable arrangements affecting all-island environmental protection and cross-border cooperation.

49. The Department countered that implications in respect of the Windsor Framework were considered during the development of the policy and the drafting of the Bill.  Assembly Legal Services also advised that none of the clauses in the Bill fall within the scope of Article 2(1) of the Windsor Framework.

50. The Committee felt that as the Bill effectively bans petroleum exploration and extraction and thereby enhances environmental protections in Northern Ireland and in respect of cross-border regions, further amendments in this regard were not required.

Clause 2: Transitional provisions

Application Fees

51. Friends of the Earth indicated that while it supported revoking all live licences and for the fees for applying for licenses to be refunded, it would not support any interest or additional costs being refunded. It suggested that interest payments would permit companies to profit from speculative or opportunistic applications.

52. The Department advised that Clause 2 provides that the Department, at its sole discretion, may provide a refund (partial or whole) to the applicants for the fee paid in relation to the relevant application. This includes an amount for interest, calculated in such a manner as the Department may determine. Additionally, the Department clarified that there is no provision for any additional costs to be recovered.

53. Members sought clarity as to how the Department will determine how a refund is calculated. The Department advised that any refund, and possible payment of interest, will be determined by the Department on a case-by-case basis and in line with Managing Public Money NI guidelines and ECHR principles. The Department indicated that in any event there were very few (2) applications; the license application fees were quite low (around £1k) and thus the refunds (including interest) would be limited.

54. Northern Ireland Assembly Legal Services advised the Committee that the removal of the power to grant licenses may merit further consideration in circumstances where persons have applied for, and may argue that they have an expectation of being granted, a license for onshore exploration. The removal of the power to grant licenses, in the case where a license has been applied for, might even conceivably amount to an interference with those persons’ Article 1 Protocol 1 (A1P1) rights in respect of the European Convention on Human Rights (ECHR).

55. The Department countered that any pending applications do not constitute possessions for the purposes of A1P1 of the ECHR, as they do not give rise to a legitimate expectation of a licence being granted and are thus unlikely to engage A1P1 rights.

56. The Committee accepted the Department’s assurances and agreed that it would not bring forward related amendments.

Clause 3: Consequential provision

57. No issues were raised in relation to Clause 3.

58. The Committee agreed that it would not bring forward related amendments.

Clause 4: Ancillary provision

Petroleum Development controls

59. Fermanagh and Omagh District Council (FODC) raised concerns that the ancillary provisions could be used to create wider discretionary powers. These, it was argued, could be used to introduce transitional or compensatory mechanisms beneficial to the oil and gas industry. FODC contended that this would go beyond the Bill’s intention and could undermine certainty, transparency and environmental protections.

60. FODC argued that the Bill should be amended to explicitly prohibit any ancillary measures that could enable continued petroleum-related development or weaken controls.

61. The Department clarified that the purpose of the Bill is to remove the petroleum licensing regime and end onshore petroleum exploration and production in Northern Ireland. Therefore, it did not consider it likely that the power would or could be used to enable petroleum related development or weaken the effect of the Bill. In any case, any such ancillary regulations would be subject to Assembly control.

62. The Department also advised that any related regulations are likely to be technical or consequential in nature. Where for example A1P1 right might be  engaged, the Department provided an assurance to the Committee that in that instance, it would ensure that any provision is justified and compliant with Convention rights, in line with Section 23 of the Northern Ireland Act.

63. The Committee noted the advice of the Examiner of Statutory Rules in respect of the regulation-making powers in the Bill including so-called Henry VIII provisions which would allow primary legislation to be amended by delegated legislation. The Committee noted that these provisions would be subject to draft affirmative resolution and on that basis agreed that it would not bring forward related amendments.

Clause 5: Commencement

64. No issues were raised in relation to Clause 5.

65. The Committee agreed that it would not bring forward related amendments.

Clause 6: Short title

66. No issues were raised in relation to Clause 6.

67. The Committee agreed that it would not bring forward related amendments.

Other matters

UK Government

68. LAMP, Belcoo Frack Free and various other stakeholders raised concerns that a regulatory ban could be over-ruled by the UK Government. These stakeholders therefore sought amendments to prevent the UK Government from overruling a ban on petroleum exploration and extraction.

69. The Department confirmed that the UK Government could, through Parliament, enact any legislation it wants in any part of the United Kingdom. Therefore, the petroleum exploration and extraction ban could be overturned by the UK Government and that no Bill passed by a devolved legislature could alter this position.

70. The Committee noted the above agreed that it would not bring forward related amendments as they would be of no benefit.

Offshore Issues

71. Stakeholders also suggested that the Bill be amended to also include a ban on offshore petroleum exploration and extraction.

72. The Department confirmed that offshore petroleum exploration and production that takes place in coastal or open waters, is not a power devolved to Northern Ireland. The Petroleum (Production Act (Northern Ireland) 1964, which is amended by the Bill, excludes petroleum existing in strata beneath the territorial sea adjacent to Northern Ireland. Therefore, offshore petroleum exploration and production falls outside of the scope of the legislative regime being amended by this Bill.

73. The Committee agreed that as the Assembly had no competence in these matters, it would not bring forward related amendments.

Clause by Clause Scrutiny of the Bill

74. The Committee’s formal clause by clause scrutiny of the Petroleum Exploration and Licensing (Repeal) Bill is set out below.

Clause 1: Principal set of repeals

Agreed:         The Committee agreed that it was content with Clause 1 as drafted.

Clause 2: Transitional provision

Agreed:         The Committee agreed that it was content with Clause 2 as drafted.

Clause 3: Consequential provision

Agreed:         The Committee agreed that it was content with Clause 3 as drafted.

Clause 4: Ancillary regulations

Agreed:         The Committee agreed that it was content with Clause 4 as drafted.

Clause 5: Commencement

Agreed:         The Committee agreed that it was content with Clause 5 as drafted.

Clause 6: Short title

Agreed:         The Committee agreed that it was content with Clause 6 as drafted.

Long title

Agreed:         The Committee agreed that it was content with the Long Title of the Bill as drafted.

Appendices

Appendix 1 - Minutes of Proceedings

Appendix 2 - Minutes of Evidence

Appendix 3 - Written Submissions

Appendix 4 - Departmental Correspondence 

Appendix 5 - Other Papers

Appendix 6 - List of Witnesses