COMPLIANCE with regulations concerning practices such as flaring is patchy in the North Sea according to the industry regulator, which has warned some firms could face sanctions if their standards don’t improve.
The Oil and Gas Authority (OGA) said industry compliance with regulatory requirements was improving following earlier interventions. However, a minority of licence holders needed to catch up in order to match the high standards set by the majority.
“In particular, the review notes that there remains room for improvement around managing production, flare and vent consents and the timeliness of licence extension requests,” said the OGA.
It warned: “Enforcement action is possible if licensees continue to get this wrong.”
READ MORE: North Sea output to fall to 'nearly nothing' by 2050, experts warn
The OGA was formed amid the official drive to try to help the North Sea oil and gas industry recover from the downturn triggered by the sharp fall in oil prices from 2014 to 2016.
The industry is facing another deep downturn amid the fallout from the coronavirus crisis.
The Brent crude price hit an 18-year low of less than $16 per barrel in April. It rallied to $45/bbl plus after some lockdown measures were eased but went back into retreat amid fears of a second wave of the coronavirus.Brent crude sold for $37.43/bbl yesterday afternoon, down around $1.70 on the day.
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