The UK’s offshore and onshore energy resources are being developed by a wide range of companies spanning different sectors. These rich and abundant resources continue to attract new companies and investors from within the UK and overseas.
As regulator for oil and gas, offshore hydrogen, and carbon storage, the North Sea Transition Authority uses its powers to make sure that companies from these industries operate in a responsible way which supports the UK’s energy security and helps the government meet its net zero 2050 target.
We use our licensing and consents processes to determine which companies can undertake oil and gas exploration and production, as well as gas storage, offshore hydrogen, and carbon storage activities, to ensure that work progresses in a timely manner, activities follow good industry practice, and that operators adhere to agreed limits on production volumes and flaring and venting. Operators also need separate authorisation before they construct or carry out work on a pipeline or well.
We also work with a range of partners, including the government, Crown Estate and Crown Estate Scotland, to ensure demand for space is met offshore, including from the oil, gas, wind and carbon storage sectors.
*The Government, in its press release of 29 August 2024, announced its plans for new environmental guidance for oil and gas firms, to provide stability for industry and support investment, and has launched a consultation on the North Sea’s energy future, including implementation of its manifesto position not to issue new oil and gas licences to explore new fields - Building the North Sea’s energy future - GOV.UK. With this in mind, the NSTA has paused issuing any invitations to apply for new petroleum licences (including out-of-round invitations) pending the finalisation of the process.
During this time, the NSTA also intends, where applicable, to take any impacts of the mentioned consultation processes into account when considering requests to amend licence term timelines, focusing on licences with licence deadlines occurring in 2025. As normal, licensees should make any licence term deadline extension requests to the NSTA in writing at the earliest opportunity, and in any event not less than three months before the end of the relevant term/phase of the licence.
In addition to the NSTA’s usual expectations as set out in our published guidance, we encourage licensees to engage with us early on any such requests, including providing evidence on the impacts of the mentioned consultation process(es) and demonstration of the delivery of work programmes and other licence activities to date. Requests should be directed to offshore.exploration@nstauthority.co.uk
