The North Sea Transition Authority (NSTA) is investigating an operator suspected of breaching one of its licence conditions.
OBLIGATIONS
The regulator will assess whether the licensee conducted a well test – intended to gauge whether or not the reservoir can produce oil or gas – without consent and failed to provide timely notification of the completion of the test.
NSTA awards oil and gas licences with conditions requiring the licensee to undertake certain actions within agreed timescales and also to provide information and request consent for actions in a timely manner.
The company could be fined £1 million, depending on the results of the investigation and if it is found to have failed to meet its obligations.
SOCIAL LICENCE
“The NSTA is focused on supporting actions which will bolster the UK’s energy security,” said NSTA interim director of regulation Jane de Lozey.
“We will not allow this vital work to be put at risk by licensees failing to uphold their regulatory obligations, to the detriment of industry’s social licence to operate and ability to attract investment.”