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.”