- Companies will normally be named at outset of investigations
- Table of decommissioning performance will keep pressure on companies to meet their obligations
- Moves will aid transparency and a level playing field on the North Sea
The North Sea Transition Authority (NSTA) has today (31 July) published its policy on the publication of company specific information [here] and summary of responses [here] following the NSTA’s Transparency Consultation which was launched in 2024.
This general policy approach sets out the information that we would normally expect to publish and the factors we will consider when making publication decisions.
It will see companies named when an investigation is opened into a suspected breach, such as exceeding production or flaring and venting consents or failure to decommission.
Previously companies were only named once a sanction was given but a decision has been made to publish names earlier as it was decided it was in both public and sector interest.
Making high-quality data more accessible helps industry make better informed investment and operational decisions; and more transparent regulation demonstrates to the public - and compliant organisations - that action is taken to address non-compliance. It also clearly tells companies that they should comply with regulatory obligations. This promotes confidence in a stable and predictable regulatory system, which encourages investment in the UK Continental Shelf.
NSTA General Counsel, Dr Russell Richardson said:
'Greater transparency in these areas is welcomed, and we hope that, in being more transparent about our investigations from the beginning, operators will have a clearer picture of ongoing enforcement work and will be incentivised to work with us to avoid sanctions in the first place.'
The consultation also considered transparency measures in respect to decommissioning obligations. The format of the publication will be finalised, but could include the name of the operator, the number of wells that require decommissioning and a table, published annually showing all the operators and their outstanding commitments.
Pauline Innes, NSTA Director of Supply Chain and Decommissioning, said:
'Last year 103 wells were fully decommissioned, and industry spent over £2bn with many licensees meeting their obligations. But we expect over 1,500 to be decommissioned by 2030, so the annual rate needs to double, and we need all of industry to step up.
'We’ve got an expert supply chain ready to execute work, but the lack of contracts in the UK is causing them to look elsewhere. That doesn’t make sense. And, if we lose the supply chain, it’ll be costly to bring them back to the UK.
'That is why, for the first time, we have opened investigations into operators which are not meeting their commitments and why this greater transparency is vital to supporting the energy transition and encouraging investment in the North Sea.'
Transparency Consultation opening
Source: NSTA
