The North Sea Transition Authority (NSTA) has fined two offshore operators, NEO and CNR International, a total of $470,000 (£350,000) for breaches related to emissions limits and well decommissioning, as the regulator continues to tighten enforcement of industry rules.
CNR International was fined $336,000 (£250,000) for exceeding permitted venting limits twice in the same year on the same fields, while NEO was fined $134,00 (£100,000) for attempting to fully abandon a well without first securing regulatory consent.
The NSTA said the sanctions underscored the importance of compliance with regulatory requirements to ensure the industry is well run and that all licensees operate on a level playing field.
“When operators accept a license, they are agreeing to adhere to the same rules as everybody else. In both these cases, a lack of familiarity with their obligations contributed to shortcomings, which is disappointing. Investors and the public rightly expect that this industry is held to high standards and there is no excuse for operators not complying with their regulatory responsibilities,” said Jane de Lozey, director of regulation at the NSTA.
Venting involves the release of excess gas, mainly methane, into the atmosphere without combustion, while flaring burns excess gas, producing mainly carbon dioxide. While both processes can be required for safety and operational reasons, the regulator said further reductions are possible. Together, venting and flaring accounted for 19% of UK Continental Shelf production emissions in 2024.
The NSTA sets annual venting and flaring limits for offshore fields through its consent process and has consistently taken enforcement action against breaches. Since the start of 2021, operators have been fined a combined $1.6 million (£1.2 million) for infringements related to venting and flaring.
CNR first exceeded its annual venting consent for its Ninian assets in March 2023 but did not identify the breach until November that year, after it was flagged by the regulator. By that point, venting volumes had exceeded the limit by 2,539 tonnes. The NSTA said the breach was linked to a lack of familiarity with guidance published in 2021 and inadequate systems for monitoring venting volumes.
CNR was granted a new consent in late November 2023 to cover the remainder of the year but exceeded the revised limit within three weeks.
Separately, the NSTA fined NEO for attempting to decommission the Leverett well to final abandonment status in March 2024 without obtaining prior consent. The regulator said the failure stemmed from a misunderstanding of regulatory requirements and raised concerns about the company’s internal processes. The abandonment work was not completed successfully and had to be repeated.
The NSTA said operators are legally required to fully plug and abandon disused wells to protect the marine environment and has repeatedly reminded companies to undertake decommissioning work in a timely and compliant manner.
Both CNR and NEO cooperated fully with the investigations, the regulator said.
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