NEO Energy Production UK Ltd (NEO) has been fined £100,000 for breaching its combined vent consent for the Donan, Lochranza and Balloch fields 200km northeast of Aberdeen.
FAILURE
The North Sea Transition Authority said that venting approval, issued for 1 January to 31 December 2022, allowed for 1.035 tonnes of venting per day, equivalent to an annual limit of just under 378 tonnes.
On 1 November 2022 the company admitted that the venting consent had been exceeded on 21 March of that year, and that it had exceeded the maximum annual venting consent by approximately 1,200t, added the NSTA.
The NSTA found that at the outset of 2022 NEO incorrectly allocated cold flare (venting) volumes to its flare consent.
“The issue remained undetected by NEO until October 2022. NEO engaged openly with the NSTA following its identification of the issue and applied promptly for a revised consent.
“In reaching a decision on the breach and the appropriate level of fine, the NSTA determined that NEO had shown a lack of oversight in failing to detect the breach for seven months, which, moreover, suggested a lack of appropriate internal oversight mechanisms.”
NSTA director of regulation Jane de Lozey said that oil and gas producers had to operate within the consents given.
“We welcome the industry’s sustained efforts in ensuring that emissions are falling year on year, noting that flaring and venting have been reduced by almost half since 2018.
“However, we take the cases where regulatory obligations are not met very seriously and do not hesitate to take firm action, as this fine demonstrates.”
The Oil & Gas Authority’s Plan, published on 27 March 2024 under the OGA Strategy, emphasises that the industry adopt electrification or other low-carbon measures to reduce production emissions.