LONDON — Britain’s North Sea Transition Authority (NSTA) says it will take action against companies that fail to meet their offshore license obligations.
It is investigating whether one particular company has failed to comply with obligations associated with an award from the 28th Licensing Round in 2014. These included acquiring new 3D seismic and drilling an exploration well.
The probe will examine the situation surrounding the license, which had been extended, following changes to the company’s ownership. If this confirms a failure to comply with the license terms, the company could receive a fine of up to £1 million (US$1.16 million).
According to the NSTA, UK offshore oil and gas licenses are routinely awarded with conditions concerning performance of certain actions within agreed timescales. It has produced guidance to assist companies in meeting requirements, while stewardship provides additional support.