The Oil and Gas Authority (OGA) has opened an investigation into a possible licence breach.
It follows an enquiry, which concluded that there was sufficient evidence of a breach of reporting requirements to go ahead.
The investigation will gather and assess further information to allow the industry regulator to reach a decision on how the case should be resolved.
The company concerned will be given the chance to provide written representations.
In October 2020 the Thematic Review into Industry Compliance with Regulatory Obligations was published, examining compliance in six areas of interaction between the OGA and licensees.
It identified some “very good” and “improving” practice, but also noted the need for further improvement and warned that sanctions could follow in cases where breaches were found.
The review itself followed a letter sent to licensees and infrastructure owners in 2019, which outlined the OGA’s regulatory approach.
While praising a great deal of constructive engagement, the letter noted that “too many issues” were taking “too long to resolve”, with the industry regulator warning it would become “progressively more proactive” in using its powers.
The OGA recently brought its revised strategy into force, placing a range of net zero commitments of oil and gas operators.
The industry regulator has the power to dish out penalties to firms found to have breached the strategy.
In the most serious of situations that can include a withdrawal of a licence or operatorship.
Recommended for you
