overview of uk offshore oil and gas regulation of uk offshore oil and gas regulation andrew taylor...

Overview of UK Offshore

Oil and Gas Regulation

Andrew Taylor

Head, Offshore Environmental Inspectorate

DECC Energy Development Unit

February 2016

1988 Piper Alpha disaster – explosion on

Occidental’s platform led to loss of 167 lives

1990 Piper Alpha inquiry led to transfer of

health and safety regulation for offshore to the

UK Health and Safety Executive

1998 Department of Trade and Industry sets up

separate team to develop and implement

comprehensive environmental regulation

2 Overview of UK Offshore Oil & Gas Regulation

UK Regulatory Milestones

1964 Single regulator, the UK Department of Energy (DEn)

2014 Wood Review of regulatory regime to secure future of UK offshore

industry and related employment

2015 Oil and Gas Authority set up to implement Wood recommendations

2015 Offshore Safety Directive led to creation of joint Competent

Authority to implement environmental and health and safety regulations


470 Installations - 58 Licensed Operators

• 10% floating installations

• 30% subsea installations

• 50% small steel installations

• 10% large steel or concrete installations –potential derogations for abandonment

Approximately 35,000 km pipelines

• 10,000 km major pipelines

Scope of Operations on UKCS

The Oil and Gas Authority (OGA)

Offshore oil & gas - Environmental Protection

2014 Review (The Wood Review)

Key recommendations

• Urgent need for enhanced

stewardship of offshore assets

• New Maximising Economic

Recovery strategy (MER UK)

• Commitment from industry to

collaborate

• Stronger tripartite relationship

between industry, government and

regulator

• New independent regulator with

additional powers and resources

Sector strategies

Prize of additional 3-4 billion barrels 375,000 industry jobs to protect


Creation of the OGA

Priorities

Rapidly

implementTrusted advisor

to Treasury

Industry to

urgently take

action

Le

ad

ers

hip

, C

ultu

re &

be

ha

vio

ur

• New independent regulator

• Effective staff resources to manage assets

• New powers, better resourced and funded

• Catalyst for change and facilitator of action

• Encouraging collaboration

• To become a separate Government Company

• Funded through an Industry Levy

• Focused on delivering MER UK Strategy

Creating the OGA Role of the OGA

Licence offshore oil & gas

Licence onshore oil & gas

Licence carbon capture & storage

Industry culture

Commercial behaviour

Greater collaboration

Investment in UKCS

Value creation

Industry development


Chief

Executive

Exploration &

Production

Policy &,

Performance HR & Change FinanceTechnology

Licensing &

Legal

Structure of the OGA

Decommissioning

Supply Chain

Technology

IT, Data &

Information

Management

Licencing

Regulation

Dispute

Resolution &

Sanctions

General

Counsel

Onshore

Licensing

Licence

Stewardship

Integrated Area

Teams

Exploration &

New Ventures

Metering

Gas Storage

CO2 Capture &

Storage

Strategy &

Policy

Development

Communication

& External

Affairs

Performance,

Planning &

Reporting

Economics &

Fiscal Analysis

HR Leadership

Organisational

Development

Support

internal &

industry

cultural change

Financial

Management &

Control

Governance

Procurement

Accommodation

Manage the

Transition to a

Government

Company

(GovCo)

New organisation effective from 1 July 2015



Main Functions of the OGA

Offshore oil and gas exploration and development policy

Licensing

Exploration

Drilling consents

Development consents

Pipeline authorisations

Production consents

Fiscal metering

Flare and vent consents

Asset stewardship and

Cessation of production and well abandonment

Decommissioning policy and costs

The Offshore Oil and Gas Environment

and Decommissioning Unit (OGED)


DECC’s Energy Development Unit (EDU) is

responsible for UK energy policy, including

offshore oil and gas, pipelines, power

generation and transmission systems

The Offshore Oil and Gas Environment and

Decommissioning Unit (OGED) is a separate

unit within DECC EDU, based in Aberdeen


Department of Energy and

Climate Change (DECC)

Structure of DECC EDU

Offshore Oil and Gas Environment and Decommissioning Unit (OGED)


Energy Development

Unit Oil and Gas Authority

O&G Environment and

Decommissioning

Environmental

Policy

Environmental

Management

Decommissioning

Unit

Environmental

Inspectorate

Environmental Teams

Environmental Management Team

(Policy and Assessment of Operations)

➢Develop and implement policy, and issue

approvals for seismic, drilling,

infrastructure, production, discharges,

emissions etc.

Offshore Environmental Inspectorate

Team (Enforcement)

➢ Issue approvals for oil discharges and Oil

Pollution Emergency Plans, and undertake

inspections, investigations and

enforcement


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Decommissioning Team


• Financial security

• Decontamination of facilities

• Removal of topsides and jackets

• Decommissioning of pipelines

• Derogations (to leave footings /

concrete structures in place)

• Monitoring

• Long-term liability

Main Functions of OGED

Environmental and Decommissioning Policy

• Influencing EU, OSPAR and Domestic Policy

Implementing Policy

• Preparing UK environmental regulations and related guidance, and agreeing voluntary initiatives

Management

• Approvals - environmental impact assessment of proposals, and issuing permits for discharges, emissions and other activities

• Decommissioning – financial security, Decommissioning Programmes, environmental aspects of programme approval, and licensing the decommissioning activities

Enforcement

• Inspections, investigations and prosecutions

• Secretary of State’s Representative


The Health and Safety Executive


• Inspect

• Investigate accidents and incidents

• Assess safety cases

• Enforce regulations

• Advise, guide and inform the industry

• Undertake and commission research and development

• Assist in the development of technical standards


HSE's Energy Division (ED) is responsible for the offshore oil and gas industry

To ensure workplace risks are properly controlled, they develop policy and:

Health and Safety Executive (HSE)

Structure of HSE-ED


ED1 - Inspection Management; and Well Engineering and Operations

ED2 - Inspection Management and Operational Business Support

ED3 - Process Integrity; Fire, Explosion and Risk Assessment;

Emergency Response; Marine and Aviation; Mechanical Engineering;

Electrical and Control Systems; Occupational Health; and Human and

Organisational Factors

ED4 - Structural Integrity; Naval Architecture and Marine Engineering;

Diving; and Offshore renewables

ED5 - Gas and Pipelines

Strategic Interventions – Incident Response


Main Functions of HSE-ED

Post-Deepwater Horizon,

Offshore Safety Directive

Competent Authority

established in partnership

with DECC EDU-OGED, to

prevent and respond to

major accidents

HSE is responsible for

regulating the risks to health

and safety arising from work

activities in the offshore

industry on the UK Continental

Shelf.

To do this, it has developed

regulations relating to

installations, pipelines , well

operations, etc. for the offshore

sector, to add to UK general

health and safety law

Offshore Safety Directive Regulator


Partnership arrangement between HSE & DECC to deliver the

Competent Authority required by the OSD – not a legal entity

CA working:

• Focus of OSDR is on Major Accident prevention and mitigation

• CA will review Safety Cases and other notifications under

SCR2015

• Joint inspection & planning

• Joint investigation

• Closer working between HSE & DECC

• Oversight from Operational Management Team & Strategic

Oversight Board

• Details at http://www.hse.gov.uk/osdr/

http://www.hse.gov.uk/osdr/

Further Information:

E-mail: [email protected]

[email protected]

[email protected]


mailto:[email protected]



overview of uk offshore oil and gas regulation of uk offshore oil and gas regulation andrew taylor...

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