The North Sea Transition Authority said it was investigating an oil and gas company suspected of failing to meet licence obligations designed to stimulate activity in support of the UK’s energy security.
SEISMIC SURVEY
The regulator will consider whether the company was obliged under the terms of a licence it was awarded in a prior licensing round to shoot a seismic survey which would help inform its decision on whether to drill an exploration well.
The NSTA will also investigate if the licensee did not provide a satisfactory alternative work programme to ensure progress continued on the acreage.
Penalties could include a sanction and a fine of up to £1 million.
The investigation is the NSTA’s second opened in recent months following a company suspected of failing to meet its licence commitments.
“The NSTA works closely with industry to drive forward exploration and production activities to help the UK meet as much energy demand as possible from its domestic oil and gas reserves,” said Jacob Blatch, the NSTA’s interim head of disputes and sanctions.
“However, as opening this investigation demonstrates, we will scrutinise incidents where licensees potentially sit on licences and make no real progress on fulfilling obligations.”
ENERGY SECURITY
The NSTA added it expected companies with valuable licences to progress exploration and production as quickly as possible in line with their licence commitments, its strategy and to help the Government reach net zero.
The regulator also aims to support the UK’s security of supply through the ongoing 33rd Licensing Round which attracted 115 bids from 76 companies.