The North Sea Transition Authority (NSTA) has confirmed its multi-million pound lease for office space in the prestigious Marischal Square building in Aberdeen.
In its annual accounts published last week, the NSTA disclosed the £7.4 million lease.
It covers a period of 15 years, the NSTA confirmed to Energy Voice – equivalent to just under £500,000 per year, with a date of entry 2 May 2022.
As the UK’s offshore oil and gas regulator, it maintains its headquarters in Aberdeen, alongside an office in Bloomsbury, London.
The new lease will see the organisation move from its current location in the AB1 Building, at 48 Huntly Street.
It comes after energy giant Shell made a high-profile move to the nearby Silver Fin building on Aberdeen’s Union Street last October from its previous HQ in Tullos.
A spokesperson for the NSTA said it expects to make the jump in late summer or early autumn.
The NSTA is largely funded by a levy on the oil and gas sector, alongside licensing fees and some limited grant funding from government.
In 2021/22, it collected just over £30m in levy payments and £2.5m in fees and charges, according to the annual report.
Where this levy funding is unspent it is returned to licence holders, with just under £4m returned via such repayments last year.
Decommissioning plans
The report also mentions the adoption of a new decommissioning cost reduction target from 2023, set to be published at the end of this year.
It comes as the sector appears poised to miss the NSTA’s current goal to reduce decom expenditure by 35% by 2023, compared with 2017 levels, amid a slow down in progress.
2021 figures put these cost reductions at around 25% so far, down from a baseline estimate of just under £60 billion to £44.6 billion last year.
Speaking at industry event last year, the regulator’s head of decommissioning Pauline Innes said: “Last year we saw signs that reductions are beginning to plateau, and [2021] figures suggest that’s continuing.
“If we keep doing the same things we may continue to see marginal savings, but it is unlikely we’ll meet the target.”
Asked whether the target was likely to be met, an NSTA spokesperson said: “The NSTA is currently in the process of finalising the Decom cost report and is therefore not yet in a position to answer to questions about specific figures.”
The latest Decom Cost Estimate Report is expected in the coming weeks, and the organisation expects to publish a full measurement of progress against the 35% target in mid-2023.
Recommended for you
