The regulatory body for the UK North Sea energy industry has handed its largest ever fine to operator Repsol for breaching offshore emissions rules.
Repsol has been penalised £160,000 after offences on its Auk North, Halley and Fulmar installations.
The rule breaches relate to the flaring and venting of 73 tonnes of gas.
The North Sea Transition Authority (NSTA) said the failure “undermines public trust and confidence in the industry and raises questions about the company’s attention to, and investment in, regulatory compliance”.
Biggest fine in watchdog’s seven-year history
The regulator was launched as the Oiland Gas Authority in October 2016, in response to the Wood Review of the offshore sector by Sir Ian Wood.
Its largest penalty until now was a £150,000 fine for EnQuest following issues on the Magnus field between November 30 and December 1 2021.
NSTA has been cutting down on flaring and venting – a process of burning off excess gas, or venting of unignited gas – which accounts for about one-fifth of emissions from North Sea oil and gas production.
Operators have halved the practice over the past four years.
They are required to end all routine flaring and venting on UK installations by 2030 at the latest.
Repsol was found to have flared gas after the expiry of a consent on June 30 2022.
The Spanish company has 30 days to pay the fine, which was issued on December 5.
A Repsol spokesperson said: “We have accepted responsibility for unauthorised flaring and venting at our Auk North, Halley and Fulmar fields.
“We co-operated fully with the NSTA’s investigation and have taken steps to mitigate the possibility of any future breaches.”
Auk lies 155 miles south-east of Aberdeen. Fulmar is 217 miles off Aberdeen, with Halley nearby and tied back to Fulmar.
We will continue to ensure that operators comply with regulations in the North Sea and will not hesitate to take action on the occasions that they do not.”
Jane de Lozey, NSTA
NSTA regulation director Jane de Lozey said: “Reducing emissions and meeting regulatory requirements is absolutely essential if industry is going to maintain its social licence to operate.
“Repsol has engaged with the NSTA to learn from its failings on this occasion and taken steps to ensure it does not happen again.
“We will continue to ensure that operators comply with regulations in the North Sea and will not hesitate to take action on the occasions that they do not.
“The NSTA is always ready to work with operators to ensure they remain in compliance, or bring them back into compliance.”
Repsol’s UK arm, Repsol Resources UK, has its headquarters on Holburn Street, Aberdeen.
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