Preparing new major-hazard reports in proposed EU offshore safety regulations would cost the industry £146million, it has been estimated.
According to a briefing note prepared by the UK Government and seen by the Press and Journal, repealing the current system and implementing new major hazard reports would also take “virtually all of the Health and Safety Executive’s offshore division specialist inspector resource for one year” – taking officials away from frontline inspection and investigation duties.
The report says early estimates suggest the cost to the industry of just changing guidance, procedures and documentation as part of the new safety regulations would be an additional £18million. Resubmitting design, well and combined operations notifications would cost a further £12million and re-introducing UK verification schemes would cost an extra £61million, it says.
The new proposals are part of draft proposed EU offshore safety regulations, put forward by the European Commission in the wake of the Gulf of Mexico disaster in 2010 in which 11 people died. The proposals have already caused uproar in the UK offshore industry, which has been acknowledged to have a robust safety regime, much of it dating back to recommendations made by Lord Cullen following the Piper Alpha disaster in which 167 men died in 1988.
Industry body Oil and Gas UK has said the regulation proposals seriously risk undermining the existing high safety and environmental standards in place on the UK continental shelf by threatening their repeal.
SNP MEP Alyn Smith raised the issue at a high-level conference in Brussels on Thursday, but said it would be prudent to engage with EU Energy Commissioner Gunther Oettinger to improve the regulations.
He said this could see the UK lead and set health and safety standards in Europe and farther afield, creating a potential business opportunity. Mr Smith added: “This is still draft regulation; this is when we need to engage with it. And we are engaging with it not because we are hostile to its aims, but we are concerned about some of the implications.
“We have got energy expertise in spades to make it better. The wider political point is this is important to us and we are a willing, constructive partner to make this better; opening up opportunities for our businesses.”
He said he would hold a series of meetings in Scotland, probably in Aberdeen, as he looked to bring together a team of experts to advise the commissioner.
OGUK said last night that electricity market reform plans being announced by the UK Government today and aimed at creating a mixed balance of energy mix were a vote of confidence in gas.
The proposals include enshrining limits on carbon emissions in legislation and steps to encourage investment in reliable capacity, including gas, to ensure security of electricity supply. Economics director Mike Tholen said: “We have long believed using gas to provide electricity and heat is cost-effective and will cut emissions sharply.”