The boss of the Oil and gas Authority (OGA) yesterday welcomed a commitment by the new energy secretary to hand the watchdog its full executive powers within weeks.
Under proposals set out in Sir Ian Wood’s review of the sector, the UK government set out that the OGA would become an autonomous government company this year following the passing of the necessary legislation.
Andy Samuel, OGA chief executive, said the transition from executive agency to a government company in October “formalises our position as a strong and effective authority with a full suite of regulatory powers”.
He said: “We are delighted to welcome Greg Clark for his first visit to Aberdeen today as Secretary of State, just weeks after being appointed.
“Over the last year, we have worked closely with our colleagues in the Department for Business, Energy and Industrial Strategy and other government departments to put in place the legislative and regulatory foundations to support OGA’s transition to an independent government company (GovCo), including the passing of the MER UK Strategy in March and the Energy Act just two months later.
“GovCo status formalises our position as a strong and effective authority with a full suite of regulatory powers to have a positive, transformational effect. Like industry, we are bound by the obligations of the MER UK Strategy, and will continue to deliver on our priorities to drive collaboration, influence and promote the remaining prospectivity of the UKCS.”
Meanwhile, Deirdre Michie, chief executive of trade body Oil & Gas UK (OGUK) had a plea to bring forward a meeting of a forum for industry leaders to discuss the industry’s ongoing difficulties answered.
She said: “I today made a direct plea to the Oil and Gas Authority and the secretary of state to bring forward the next meeting of the important industry and governmental group, the MER UK Forum, to discuss the immediate challenges of low investment and activity facing the North Sea. I’m pleased to say they have agreed to do this.”
She added: “If we make the correct interventions now, the industry can continue to play a critical role in meeting the UK’s energy needs, support hundreds of thousands of jobs, and ensure the world-leading expertise that the sector possess are not lost.
“We look forward to working with Mr Clark and his team to help create a robust industrial strategy which recognises the importance of oil and gas as an indigenous, secure supply of energy and a bridge to a lower carbon economy, as well as remaining a vital contributor to the UK economy.”
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