OGA Investigates Suspected Breach of Production Consents

Source: www.gulfoilandgas.com 11/10/2021, Location: Europe

The Oil and Gas Authority (OGA) has opened an investigation into a possible breach of field Production Consents, contrary to the requirements of the licenses.

The investigation follows an Enquiry which concluded that there was sufficient initial evidence to merit a full investigation into a potential failure to comply with such Consents.

The investigation will now among other things:
- gather and assess further information to enable the OGA to reach a decision
- offer the company concerned the opportunity to provide written representations
- decide how the case should be resolved

The investigation follows the publication in October 2020 of the OGA’s Thematic Review into Industry Compliance with Regulatory Obligations.

The Review, which examined compliance in six areas of interaction between the OGA and licensees, 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 June 2019 OGA letter to licensees and infrastructure owners 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’ and warned that ‘we will be progressively more proactive in using the OGA’s powers’.


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