BP fined £50,000 for North Sea licence breach

BP has been fined £50,000 by the Oil and Gas Authority (OGA) for breaching a licence condition in the North Sea. 

The OGA have served BP with a sanction notice and have said that they failed to report the progress and results of two extended well tests in the Vorlich field.

Having granted consent to drilling of two development wells, the OGA provided further consent for BP to conduct extended well tests (EWT) on two wells in August 2019.

Those consents included the need for the licensee to provide regular reports during EWT operations (the reporting requirements) and BP was also required to submit a full report of the results and conclusions within 90 days of completion of the EWT operations.

Following an inquiry by the authority, the OGA said that in November 2020, BP admitted that it had failed to report as required.

The authority said that by failing to comply with the reporting requirements, BP unintentionally created an “unregulated environment in which the OGA was unsighted of BP’s actions”.

Jane de Lozey, OGA acting director of regulation, said:

“We are committed to maintaining a strong regulatory regime to uphold standards and ensure a level playing field for licensees and operators in the UK Continental Shelf (UKCS).

“On this occasion BP has fallen short of our expectations but, since becoming aware of the breach, BP has engaged positively with the OGA to investigate the cause of the failure and reaffirmed its commitment to compliance with its regulatory obligations in future.

“We will continue to work with industry to improve compliance, and we are currently considering other matters within the UKCS that may result in further regulatory action.”

BP has been asked for comment.




The Herald Scotland

The Herald Scotland

The Herald is a Scottish broadsheet newspaper founded in 1783. The Herald is the longest running national newspaper in the world and is the eighth oldest daily paper in the world. The title was simplified from The Glasgow Herald in 1992