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.'
- This case concerns the recovery of hydrocarbons. The suspected failure took place at a time when the OGA was following the MER Strategy.
- 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.
- 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'.??
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