overview of uk offshore oil and gas regulation of uk offshore oil and gas regulation andrew taylor...
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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
3 Overview of UK Offshore Oil & Gas Regulation
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
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
5 Overview of UK Offshore Oil & Gas Regulation
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
6 Overview of UK Offshore Oil & Gas Regulation
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
7 Overview of UK Offshore Oil & Gas Regulation
8 Overview of UK Offshore Oil & Gas Regulation
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)
Offshore oil & gas - Environmental Protection
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
10 Overview of UK Offshore Oil & Gas Regulation
Department of Energy and
Climate Change (DECC)
Structure of DECC EDU
Offshore Oil and Gas Environment and Decommissioning Unit (OGED)
11 Overview of UK Offshore Oil & Gas Regulation
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
12 Overview of UK Offshore Oil & Gas Regulation
Decommissioning Team
13 Overview of UK Offshore Oil & Gas Regulation
• 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
14 Overview of UK Offshore Oil & Gas Regulation
• 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
16 Overview of UK Offshore Oil & Gas Regulation
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
17 Overview of UK Offshore Oil & Gas Regulation
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
18 Overview of UK Offshore Oil & Gas Regulation
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
19 Overview of UK Offshore Oil & Gas Regulation
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/