NSTA: North Sea operators must meet license commitments to ensure level playing field for all

October 28, 2022

The North Sea Transition Authority (NSTA) is warning industry that it will not hesitate to take action against companies that fail to meet their license obligations.  

An investigation has been opened into whether a company, which was awarded a license in the 28th Licensing Round in 2014, has failed to comply with several obligations including drilling an exploration well and shooting a 3D seismic survey.  

The NSTA is committed to supporting the UK’s drive for energy security and expects companies awarded valuable North Sea licenses to progress exploration and, where appropriate, production as quickly as possible.  

The current investigation will examine the situation surrounding the licence, which had been previously extended, and in light of changes to company ownership.  

Dependent upon the results of the investigation, a fine of up to £1million could be levied if the company is found to have failed to meet its obligations.  

Oil and gas licenses are routinely awarded with conditions attached requiring the licensee to undertake certain actions within agreed timescales. The NSTA has produced a wide range of guidance to assist companies in meeting license and regulatory requirements, and ongoing stewardship provides additional support.  

Jane de Lozey, NSTA Interim Director of Regulation, said:  

“Ensuring the UK’s energy supply is vital, so it is important that companies meet their licence obligations and progress projects as quickly as practicable.  

The NSTA is committed to ensuring the growth of the UK’s energy supply and will not hesitate to take action in cases where companies fail to meet their obligations.”  

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