Disputes and Sanctions
The OGA’s escalation process describes the steps the OGA will usually take leading up to a decision whether or not to exercise its powers, and the process is illustrated in the figure below:
OGA's measured escalation process
When the OGA launches an investigation, a summary of this will be recorded in our online case register. A link to the case register can be found here. Once an investigation has been concluded the outcome will be published by the OGA, details of published cases can be found on our Regulatory Decisions page here.
When considering whether or not to take action using the formal powers the OGA will review that issue alongside its prioritisation criteria which includes, Impact on MER UK, Strategic significance for the OGA, OGA time and cost; and Likelihood of success.
For more detailed information on the prioritisation criteria please refer to the OGA’s Enquiry Guidance.
Investigation – Cygnus and Pegasus
On 25 June 2019, the OGA opened an own initiative non-binding dispute resolution investigation into the prioritisation of access to Cygnus capacity in relation to transportation and processing services for gas from the Pegasus field, taking into account in particular:
(a) the nature and timing of the various Cygnus resource progression opportunities;
(b) the plant operating mode limitations; and
(c) the pre-investment made in future facilities at the time of Cygnus FID / FDP consent.
The parties to the investigation are on the one hand, the owners of the Cygnus hub, comprising Neptune E&P UK Ltd and Spirit Energy, and on the other hand, the owners of the Pegasus field, comprising Spirit Energy and Hague and London Oil BV.
The OGA will provide further updates as the investigation progresses.
The latest version of the case register can be found here.
The OGA’s Regulatory Approach
On 4 June 2019, Tom Wheeler, the OGA's Director of Regulation, wrote to all licensees and infrastructure owners regarding the next stage of our regulatory approach. The text of the letter can be viewed here
The OGA has recently (May 2019) published guidance on its new Enquiry process. When an issue has not been resolved by stewardship, facilitation or enhanced facilitation it will be passed onto the OGA’s Regulation Directorate for further consideration and whether formal powers could be applied to resolve the issue. A link to the guidance can be found here along with the OGA’s response to comments received from the Commercial Manager’s Forum steering group.
Quick links to Guidance
The OGA have published a range of guidance which can be accessed (by clicking the graphics) below:
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