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UK Oil and Gas Authority begins sanctions investigation

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Oilfield Technology,

The UK's Oil and Gas Authority (OGA) has opened an investigation into a possible failure to maximise economic recovery (MER) for the UK due to a commercial disagreement.

The OGA considers there to be sufficient initial evidence and will now open a sanctions investigation.

The investigation will now, among other things:

  • Gather and assess further information to enable the OGA to reach a decision.
  • Offer the companies concerned the opportunity to provide written representations.
  • Decide how the case should be resolved.

A June 2019 OGA letter to licensees and infrastructure owners outlined the OGA’s regulatory approach. While praising a great deal of constructive engagement, the letter noted that: “Despite good progress we still see too many issues taking too long to resolve or ending up in deadlock between disputing parties, threatening MER UK.”

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