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
(It is noted that the data in the graphic above is continually reviewed and may be subject to minor amendment following such review)
When the OGA launches an investigation, a summary of this will be recorded in our online case register. The latest version of the case register can be found here. Once an investigation has been concluded the outcome will be published by the OGA on its case register. Details of cases archived since May 2019 can be found on our Regulatory Decisions (archived since May 2019) page.
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.
Thematic Review - publication of report postponed (27 April 2020)
The Oil & Gas Authority (OGA) is postponing the publication of its report on the thematic review of industry’s compliance with its regulatory obligations, due to the specific operational and financial challenges currently facing the industry.
We launched the thematic review on 9 October 2019 and originally expected to publish at the end of April (see below for more details, including link to the slides that accompanied our launch).
Through our review we have identified several simple measures that we believe the OGA and industry can take to assist industry in complying with its regulatory obligations, but we recognise that these need to be introduced at the right time and we have therefore taken the decision to delay publication. This remains, however, an important issue and we remain committed to publishing the report, once operational and financial conditions have stabilised.
In the meantime, the OGA is pleased to note a reduction in compliance breaches it has considered in 2019, in response to various initiatives introduced by the OGA over the last year or so, as demonstrated in the chart below.
Whilst there is no room for complacency, and industry needs to be mindful of its continuing regulatory obligations through this difficult period, the OGA considers this is a promising move in the right direction.
As stated in the message from Andy Samuel, the OGA intends to take a pragmatic approach to compliance where possible during this difficult time, but we encourage each operator and licensee to play its part in retaining the industry’s good reputation in this area.
We would like to take this opportunity to thank OGUK for its assistance with this valuable piece of work, and in addition thank industry for its positive engagement with our survey on this subject.
Thematic Review – Regulatory Obligations
On 9 October the OGA hosted a very well attended breakfast briefing to launch its first Thematic Review – if you missed the session, please find the accompanying slides here. This thematic review aims to increase compliance with regulatory obligations, a vital part of the oil and gas industry’s social licence to operate, by means of an open, transparent and consultative process.
The first step in the thematic review is for the OGA to carry out a grassroots industry survey with OGUK, who will send out the survey and receive all responses before passing on anonymised and collated information to the OGA. This will ensure that the responding companies feel able to provide honest responses to the survey, which will maximise the benefits of the review. The survey is being sent out on 10 October, with a 4 week period for responses ending on 7 November. It will ask a number of questions in relation to various areas of licences and consents, designed to find out where most assistance is needed – whether it be better guidance, better processes, more education, and so on.
Once the responses have been received and analysed, the OGA will be working with OGUK to develop tailored solutions to address the feedback received. We will also be carrying out some international benchmarking work as part of the review in order to benefit from established best practice. We are also offering licensees the opportunity for a 1:1 meeting with members of the thematic review team before the end of November, to discuss any particular perspectives they may have including areas they feel need fixing, solutions they have found which can be shared to the benefit of others, or just general comments on the areas covered by the thematic review. Please get in touch with firstname.lastname@example.org if you would like to avail yourself of this.
Investigation – Cygnus and Pegasus
On 30 August 2019, the OGA concluded its 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.
The parties to the investigation were 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 has issued a recommendation to the parties pursuant to section 23 of the Energy Act 2016. A non-confidential summary of the recommendation 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:
For all general enquiries, please contact: email@example.com