NSTA issues highest fine to date for GHG emissions in North Sea
Offshore staff
ABERDEEN — Repsol North Sea Ltd. has been fined £160,000 ($201,936) for flaring and venting more than 73 tonnes of gas. This is the highest fine the North Sea Transition Authority (NSTA) has issued to date for emitting greenhouse gases into the atmosphere without permission.
The NSTA said the fine recognizes that Repsol’s failure undermines public trust and confidence in the industry and raises questions about the company’s attention to, and investment in, regulatory compliance.
The NSTA also said it has repeatedly told the UK oil and gas industry that meeting regulatory obligations is vital for sustaining the industry’s social licence to operate and has the potential to undermine public confidence.
The industry has seen North Sea greenhouse-gas emissions in total cut by 23% between 2018 and 2022.
Repsol, which operates the Fulmar facility, east of Dundee in the Central North Sea, has received short-term flare and vent consents since January 2019 to cover necessary actions associated with post cessation of production activities on Fulmar, Auk North and Halley.
Since July 2020, the short-term consents have noted the fact that the main users of the Fulmar platform are now third parties, and the Fulmar facility is providing oil and gas processing facilities for third parties.
In July 2022, the NSTA informed Repsol that there were no valid consents in place for Auk North, Halley and Fulmar. The NSTA told the company that continuing to flare or vent after consent expired on June 30, 202,2 would be a failure to comply with regulatory requirements.
The penalty is decided by reference to the NSTA’s Financial Penalty Guidance, which states that a penalty should be:
- Effective in addressing the underlying cause of the failure to comply;
- Dissuasive of future failure to comply; and
- Proportionate to the significance of the failure.
The financial penalty of £160,000 must be paid to the NSTA before it is submitted to the consolidated fund. It must be paid within 30 days of the sanction notice, which was issued on Dec. 5, 2023.
The highest fine issued previously by the NSTA was £150,000 in December 2022. EnQuest was fined for flaring an excess 262 tonnes of gas on the Magnus Field between Nov. 30 and Dec. 1, 2021, despite knowing that it did not have the necessary consent in place. During the same time, Equinor also was sanctioned for exceeding flaring permits, and Spirit Energy was fined for breaching production limits.
12.13.2023
