A license awarded either by a Government or State Oil company. It defines an area, often referred to as a Block, granted to a company or group of companies for the exploration, production or transportation of oil and/or gas under specified terms and conditions and for a fixed period. Concession areas are frequently initially awarded for exploration. If this is successful then a smaller area is defined, within the exploration block, to be a production block. May also be applied to permits to construct pipelines, power stations etc.