The NSTA’s role is to take the steps necessary to:[13]
secure that the maximum value of economically recoverable petroleum is recovered from the strata beneath
relevant UK waters; and, in doing so,
take appropriate steps to assist the Secretary of State in meeting the net zero target, including by reducing as
far as reasonable in the circumstances
greenhouse gas emissions from sources such as flaring and venting
and power generation, and supporting carbon capture and storage projects.
In June 2013, the
UK government asked Sir
Ian Wood of
Wood Group to conduct a review into maximising the recovery of oil and gas from the
UK Continental Shelf. One of the recommendations of the
Wood Review was the creation of an independent
economic regulator for the sector.[15] Subsequently the OGA was launched on 1 April 2015 as an
executive agency of the
Department of Energy and Climate Change. The Energy Act 2016, which received Royal Assent in May 2016, created the legislative framework to formally establish the OGA as a government company, limited by shares under the Companies Act 2006, with the then Secretary of State for Business, Energy and Industrial Strategy (now the Secretary of State for Energy Security and Net Zero) the sole shareholder. The Energy Act 2016 also provided the OGA with new regulatory powers, including the ability to participate in meetings with operators, to have access to data, provide dispute resolution and introduce a range of sanctions such as enforcement notices and fines of up to £1 million. On the 6 March 2019, Frances Morris-Jones was replaced by Tim Eggar as the chairman of the authority.
Fracking
On 1 November 2019, following a report from the Oil and Gas Authority, the government called a halt to all
fracking in the UK "with immediate effect"[16] and warned shale gas companies that it would not support future projects.[17]
Corporate information
Name
On 1 July 2015, Oil and Gas Authority Limited was
incorporated as a private limited company in
England and Wales under the
Companies Act 2006,[3] although following incorporation it remained
dormant for
financial year 2015-2016.[18] Pursuant to the
Energy Act 2016, Oil and Gas Authority Limited was renamed Oil and Gas Authority on 12 July 2016.[19] Under the Companies Act 2006, private limited companies are required to include the word "limited" in their names unless exempted;[20] the Energy Act 2016 provided for such an exemption,[21] which
came into force on 12 July 2016.[22]
On 21 March 2022, the Oil and Gas Authority adopted the
trading name of North Sea Transition Authority,[1] although its legal name remains unchanged.[i] In a
House of Commons debate on 29 March 2022,
Caroline Lucas accused the government of
greenwashing over the change of name.[23] Following this, on 31 March 2022,
Greg Hands, Minister for Energy, Clean Growth and Climate Change, said in a
written statement to the House of Commons that "[t]he new name better represents the breadth of work it now undertakes and its pivotal role in supporting the UK upstream oil and gas industry to achieve net zero emissions."[24]
In September 2021
Greenpeace reported that eight of the OGA's 13 board members and senior managers previously worked in the industry, and three held sizeable shareholdings in oil firms. The OGA said their knowledge was vital in helping to regulate the sector.[28]
Ownership
Oil and Gas Authority has one
ordinary share, which from 2016 until 2023 was owned by the Secretary of State for Business, Energy and Industrial Strategy.[7] Its owner remained unchanged, with each subsequent
confirmation statement showing no
shareholder changes,[29] until 3 May 2023 when it was transferred to the Secretary of State for Energy Security and Net Zero by
order in council upon the incorporation of that office.[ii]
Notes
^
abThe
Companies Act 2006, section 81(1) provides that "A change of a company’s name has effect from the date on which the new certificate of incorporation is issued."[2] As of 24 April 2022, a new certificate of incorporation changing the Oil and Gas Authority's legal name to North Sea Transition Authority has not been issued; its legal name therefore remains Oil and Gas Authority.
^On 3 May 2023 The Secretaries of State for Energy Security and Net Zero, for Science, Innovation and Technology, for Business and Trade, and for Culture, Media and Sport and the Transfer of Functions (National Security and Investment Act 2021 etc) Order 2023 came into force,[30] article 8(1) of which transferred "all property, rights and liabilities to which the Secretary of State for Business, Energy and Industrial Strategy is entitled or subject at the coming into force of this Order in connection with any energy function", where 'energy function' means any function so far as "(a) it is transferred by article 7 [of the Order], or (b) it was entrusted to the Secretary of State for Business, Energy and Industrial Strategy immediately before 6th February 2023 and has before the making of this Order been entrusted to the Secretary of State for Energy Security and Net Zero."[31]