The Oil and Gas Authority (OGA) said that a minority of companies still needed to improve standards to match those of the majority and warned it would take enforcement action if problems persist.
The warning comes after OGA reported in September 2020 that the volume of gas flared and vented in offshore upstream oil and gas production last year was equivalent to 3% of all the natural gas produced in 2019. (bit.ly/35LLALO)
A recent review by OGA showed “patchy compliance” in some areas of the management of licences around managing production, flare and vent consents and the timeliness of licence extension requests.
The review reported that feedback from employees in an anonymous survey highlighted the need for improved training and better preparation for job handovers.
One of the OGA’s long-term recommendations to raise standards is to establish, in conjunction with industry, an online training academy and create new systems, including for new energy transition-generated requirements.
The Thematic Review into Industry Compliance with Regulatory Obligations recognised that the hydrocarbon industry was improving following earlier interventions, but improvements were needed.
“The industry generally has a very good record of meeting its regulatory obligations, but in this area compliance has been patchy,” said OGA director of regulation Tom Wheeler.
“While we are pleased with the response to our earlier interventions, this must be maintained and a minority still have improvements to make. In future, industry should expect us to be proactive in taking enforcement action.”
The review looked at six areas of interaction between licensees and the OGA and examined the reasons why some licensees failed to reach standards while others complied with regulations.
These included licence mechanics (the process of applying for, extending and renewing licences), flaring, venting and production consents, pipeline works authorisations, wells consents, data requirements (data reporting and information and samples plans), and statutory notification of meetings.
The OGA’s review used information from workshops with key stakeholders and regulators in the UK and abroad.
Other recommendations that OGA expects industry to follow include establishing co-ordinators with generic email addresses for each area covered by the review; holding quarterly knowledge-sharing meetings for coordinators; addressing potential single points of failure by ensuring that knowledge/roles are shared; and ensuring new staff understand all OGA guidance.
OGA said that companies should take responsibility for complying with regulations, but that in the short-term it would to help by reviewing and revising existing guidance; delivering new wells guidance and new training videos; continuing to improve the OGA website’ and incorporating survey feedback in ongoing IT developments, including guidance links and auto acknowledgement of statutory meeting notifications
Mr Wheeler added: “We are here to help and that is why we are pledging to improve the quality and accessibility of the guidance we produce and look forward to working with colleagues from industry on setting up a training academy and creating new systems, particularly for meeting the challenges posed by the energy transition.”