Oil & Gas UK’s chief executive, Deirdre Michie, commented:
‘We welcome the inclusion of an Energy Bill as part of the 2015-2016 parliamentary legislative session announced at the State Opening of Parliament today (Wednesday 27 May). This Bill will formally establish the Oil & Gas Authority (OGA) as an independent, government company (GovCo). The OGA is a critical catalyst for the work being done to sustain offshore activity.
‘We look forward to receiving further details of this new legislation when the Bill is published, that will complete the implementation of Sir Ian Wood’s recommendations for MER UK – Maximising Economic Recovery from the UK continental shelf, in addition to providing the full set of tools and capabilities that the new regulator will need to do this job effectively and efficiently. We hope Government will bring forward this legislation as soon as possible.
‘We are at a critical stage in the history of UK offshore oil and gas development and bold steps need to be taken now to ensure strong activity continues into the future. Oil & Gas UK is dedicated to continuing its engagement with the OGA and HM Treasury, forming a tripartite approach to maximising economic recovery of the UK’s substantial remaining oil and gas reserves, as recommended in the Wood Report and agreed by all major parties, bringing through the change that is so urgently required.
‘The commissioning of the Wood Review and implementation of its recommendations, and the tax changes announced in the 2015 Budget, laid strong foundations for the regeneration of the UK North Sea. The focus of the industry now is to continue its hard work to increase efficiency and address its cost base.’