Fourth compliance probe into separate companies opened this year
Enquiry found sufficient initial evidence for full investigation
The Oil and Gas Authority (OGA) has opened an investigation into a possible breach of field Production Consents, contrary to the requirements of the licences.
The investigation follows an Enquiry which concluded that there was sufficient initial evidence to merit a full investigation into a potential failure to comply with such Consents.
The investigation will now among other things:
- gather and assess further information to enable the OGA to reach a decision
- offer the company concerned the opportunity to provide written representations
- decide how the case should be resolved
The investigation follows the publication in October 2020 of the OGA’s Thematic Review into Industry Compliance with Regulatory Obligations.
The Review, which examined compliance in six areas of interaction between the OGA and licensees, identified some very good, and improving, practice, but also noted the need for further improvement and warned that sanctions could follow in cases where breaches were found.
The Review itself followed a June 2019 OGA letter to licensees and infrastructure owners which outlined the OGA’s regulatory approach. While praising a great deal of constructive engagement, the letter noted that ‘too many issues [were] taking too long to resolve’ and warned that ‘we will be progressively more proactive in using the OGA’s powers’.
Notes to editors:
- The investigation has been launched under the OGA’s Sanction Procedure
- The OGA has the duty to regulate the industry and has communicated to industry the strategic significance the OGA places on regulatory compliance to support industry’s “social licence to operate”
- This is the fourth investigation into compliance matters opened by the OGA in 2021:
OGA investigates delay to Elgin Franklin transaction (26 October 2021)
OGA launches investigation into possible breach of flare consent (16 August 2021)
OGA launches investigation into possible licence breach (10 August 2021)
OGA fines bp £50,000 for licence breach (26 July 2021)
- The OGA’s Final Report on its Thematic Review
- Follow us on Twitter at @NSTAuthority
For further information please contact:
Tel: 07785 655620