The UK's new regulator, the Oil and Gas Authority (OGA), has now been established as an independent government company by the UK government.
The move formalizes the transfer of the Secretary of State’s regulatory powers in respect of oil and gas to the OGA, and grants it new powers.
The OGA’s new powers include dispute resolution, meetings access and sanctions. Detailed information has been published on the OGA’s website to clearly outline obligations and issue guidance on how it intends to use these to support industry, promote good practice and facilitate action. In addition, the OGA now has a remit to work with industry to ensure cost-effective decommissioning.
Andy Samuel, CEO at the OGA, said: “We have been in action since day one, supporting industry to deliver our shared objective of maximizing the economic recovery of oil and gas. Industry has made great strides to increase production, efficiency and collaboration, recognizing the need to compete for investment in a global market.
“Today marks a new chapter for the OGA. All the good work will carry on as we regulate, influence and promote the oil and gas sector, working closely with industry and government. We will use our new powers strategically to help maximize economic recovery and increase collaboration, transparency and pace of delivery. We are committed to helping industry capitalize on the potential 20 billion boe that remain.”
UK Government Secretary of State for Business, Energy and Industrial Strategy Greg Clark said: “We have a world leading oil and gas industry in the UK that we are extremely proud of, and establishing an independent regulator shows that we are listening to what the industry needs.
“As a government company the Oil and Gas Authority will have the powers it needs to be a strong, independent regulator and act with greater speed and flexibility to attract investment, support jobs and ensure that UK oil and gas remains a major player on the world stage.”