Industry, legal experts and businesses in Aberdeen have thrown their support behind a call to the UK Government over future OGA appeals processes.
As revealed exclusively by Energy Voice yesterday, Scottish Energy Minister Fergus Ewing has asked politicians to spell out exactly where the Oil and Gas Authority’s (OGA) appeals process would be held, or risk losing out on a specialised skills set.
The Scottish Energy Minister, with the support of legal experts, has asked the UK government to fast-track its timeline and ensure new appeal cases relating to OGA decisions be heard in Aberdeen.
As it stands, confirmation as to where the appeals would be heard could come as late as 2020, according to Mr Ewing.
The new process, which is part of the new UK Energy Bill, allows companies to be appeal against the regulator’s decisions.
Oil & Gas UK chief executive Deirdre Michie said it was imperative to ensure the number of “tribunals are kept to a minimum” but said it “makes sense” for the appeals to held in Aberdeen.
She said:“It is in everyone’s interest that the number of tribunals are kept to a minimum, but as and when they do take place, it makes sense from a cost and efficiency point of view that they are held in Aberdeen where the OGA and majority of operators are based and where there is a considerable amount of oil and gas expertise available (legal and otherwise).”
Meanwhile, Bill Drummond, managing partner of Brodies LLP said the lower oil price meant it was both “sensible and important” that appeals should be held in Aberdeen.
He said:”Aberdeen is the obvious choice given proximity to the industry regulator, accessibility for the upstream operations affected by its decisions and, of course, the specialist oil and gas sector legal and technical support available on its doorstep.
“The vast majority of the hydrocarbons produced from the UKCS are in Scottish waters – and the centre of this vital industry for the UK’s energy security is Aberdeen.
“Basing the tribunal as close as possible to the people, knowledge and businesses that have made the industry such a major contributor to our economy is surely the rational choice.
“In uncertain times, it is important for the oil and gas sector to have certainty as to the location of the tribunal. It has been suggested that a decision as to where the appeals will be held could come as late as 2020.
“Given the current challenges faced by the industry, clarity on the location is needed sooner rather than later in order to allow companies and the industry supply chain which make such a valuable contribution to the Scottish and UK economy to make informed plans for the future.”
Aberdeen & Grampian Chamber of Commerce is also backing the rallying call.
James Bream, research & policy director at the Chamber, said: “We have been supportive of the creation of the Oil & Gas Authority and its location in Aberdeen recognises the city’s role at the centre of activity in the UK Continental Shelf.
“As the oil and gas capital of Europe, both the private and public sector have a role in anchoring the region’s worldwide status, and locating the tribunal team in the city would help support these objectives.”
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