The Oil and Gas Authority (OGA) has opened an investigation into a possible failure to maximise economic recovery for the UK due to a commercial disagreement. 

The OGA considers there to be sufficient initial evidence and will now open a sanctions investigation. 

The investigation will now, among other things:  

  • gather and assess further information to enable the OGA to reach a decision
  • offer the companies concerned the opportunity to provide written representations
  • decide how the case should be resolved

A June 2019 OGA letter to licensees and infrastructure owners outlined the OGA’s regulatory approach. While praising a great deal of constructive engagement, the letter noted that: “Despite good progress we still see too many issues taking too long to resolve or ending up in deadlock between disputing parties, threatening MER UK.” 

Notes to editors: 

  1. This case concerns the recovery of hydrocarbons.  The suspected failure took place at a time when the OGA was following the MER Strategy.  
  2. The MER Strategy has been succeeded by the current OGA Strategy.Industry collaboration is key to maximising economic recovery and assisting the Secretary of State to meet net zero targets. 
  3. The investigation has been launched under the OGA’s Sanction Procedure 
  4. 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”.  
  5. Follow us on Twitter at @NSTAuthority


For further information please contact: 

Tel: 07785 655620