In our December 2013 edition, we reported on Sir Ian Wood's interim report on the offshore oil & gas industry in the UK. Sir Ian has on 24 February 2014 published his final report entitled "UKCS Maximising Recovery Review". The core recommendations of the report are:
- a new shared strategy for maximising economic recovery (of oil & gas) for the UK, with commitment from the government (HM Treasury and a new regulator) and the industry;
- the creation of a new arm's length regulatory body to oversee and develop this programme of change and growth; and
- greater collaboration and commitments by industry in areas such as development of regional hubs, sharing of infrastructure and reducing the complexity and delays in current legal and commercial processes.
The UK government has announced it will act on the key recommendations of the report and plans to create a powerful new regulatory body to oversee the maximisation of production from the country's limited North Sea oil fields. The new body will be responsible for realising an additional 3 to 4 billion barrels of oil & gas, worth up to £200 billion over the next 20 years.
The new regulator will be charged with ensuring closer cooperation between firms working in the field, the exploration of new sites and the implementation of a codified, long term strategy for the country's oil & gas future. It will also act as an intermediary between firms and help to increase the currently low levels of interest large oil companies are showing in the region. This is a major change since historically the UK's oil & gas industry has always been regulated by the government.
Click here for the final report
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