OGA Reprioritizes in Wake of Virus and Price Drop
The UK Oil and Gas Authority (OGA) has reprioritized in the wake of the coronavirus outbreak and the latest oil price crash.
In a statement posted on its website, the organization said areas of immediate focus include financial and operational resilience, operations and turnarounds, license management, the supply chain and communication.
The OGA said it will take a pragmatic approach to compliance where it can and a flexible approach to considering amendments to license timelines. It said it expects to offer its 32nd Offshore Licensing Round awards in the summer, adding that it will be “considerate and open to dialogue with applicants at the time of award”.
The OGA outlined that it has de-prioritized stewardship reviews and noted that it is working with operators and the supply chain to help secure timely payments.
“As the COVID-19 pandemic continues to impact on our way of life, the economic impact, combined with a significant fall in the commodity price, has hit the UK oil and gas industry hard,” the OGA said in an organization statement.
“The Oil and Gas Authority is firmly focused on its role of working with industry and government through this difficult time to safeguard both the energy supply we know is needed for the foreseeable future and the thousands of jobs which help deliver it,” the OGA added.
“Maintaining our critical infrastructure is vital. We’re working very closely with the Department for Business, Energy and Industrial Strategy and HM Treasury on financial resilience, while supporting the work of industry and trade associations such as OGUK on operational and logistical resilience,” the OGA continued.
The organization went on to say that the scale of the challenge is “considerable” but added that the efforts of all parties are “fixed on successfully navigating through this unprecedented period of uncertainty”.
The OGA’s role is to regulate, influence and promote the UK oil and gas industry in order to maximize the economic recovery of the UK’s oil and gas resources, according to the organization’s website. Headquartered in Aberdeen, the OGA became a government company in October 2016.
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