The North Sea Transition Authority (NSTA), Great Britain’s energy regulator, has levied fines totalling £350,000 against two North Sea operators, CNR International and NEO, for breaches related to emissions limits and well decommissioning on the UK Continental Shelf (UKCS). This action underscores the NSTA’s intensified efforts to ensure regulatory compliance within the industry.
CNR International received the larger penalty of £250,000 (approximately $335,000) for twice exceeding its annual venting limits across its Ninian assets within a single year. The initial breach in March 2023, which saw the company exceed its consent by 2,539 tonnes, only came to CNR’s attention in November 2023 after being flagged by the NSTA. The regulator attributed this oversight to a lack of staff familiarity with 2021 guidance and deficiencies in the company’s systems and processes for monitoring venting volumes. Despite being granted a new consent on 23 November 2023, CNR again surpassed this revised limit within three weeks.
Separately, NEO was fined £100,000 (approximately $134,000) for attempting to decommission the Leverett well to its final abandonment phase, ‘AB3’ status, in March 2024 without obtaining the requisite regulatory consent. The NSTA stated that NEO misunderstood the relevant requirements, a lapse that “raises questions about the company’s processes”. Consequently, the abandonment work was not executed successfully and required redoing. Both CNR and NEO fully cooperated with the NSTA’s investigations.
These recent sanctions follow a previous £150,000 (approximately $200,269.5) fine issued to Chrysaor, now part of Harbour Energy, for similar vent breaches. The NSTA highlights that flaring and venting activities constituted 19% of UKCS production emissions in 2024. The regulator maintains stringent control over these activities by setting annual upper limits for fields through its consent issuance process. Since the beginning of 2021, the NSTA has collectively fined operators £1.2 million (over $1.6 million) for flaring and venting infringements, underscoring its commitment to holding the industry accountable for emissions.
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Jane de Lozey, NSTA’s Director of Regulation, commented on the importance of adherence to standards, stating:
“When operators accept a licence, they are agreeing to adhere to the same rules as everybody else. In both these cases, a lack of familiarity with their obligations contributed to shortcomings, which is disappointing. Investors and the public rightly expect that this industry is held to high standards and there is no excuse for operators not complying with their regulatory responsibilities”.
The NSTA views these sanctions as vital for demonstrating that the industry is well-managed and takes its responsibilities seriously, ensuring a level playing field for all licensees.
