The North Sea Transition Authority (NSTA) sought views on proposed NSTA Guidance on the conduct of licence assignments (the “Guidance”). This consultation invited views on the Guidance from those who will be required to act in accordance with the Strategy and those seeking to invest in the UKCS.
The consultation opened on 28 March 2023 and closed on 23 May 2023.
The NSTA is focussed on maintaining a stable and predictable system of regulation which encourages investment in oil, gas, carbon storage operations and in energy transition projects in the UKCS. Delays to assignments can potentially discourage investment in the UKCS.
The NSTA recognises that a transaction may be delayed for good reasons and that a consenting party might have good reason to withhold consent. Nevertheless, the NSTA is concerned that some transactions have been delayed or threatened because of the time taken to obtain the consent required from the relevant consenting parties to allow the assignment to proceed.
The NSTA therefore consulted licensees, infrastructure owners and those seeking to access the UKCS regarding the proposed Guidance on the principles to be followed when seeking to conduct assignments. The proposed Guidance sought to support and provide confidence to current licensees and potential future investors during transactions involving a licence assignment.
Access the consultation document, and included proposed Guidance, by clicking here.