OGA to lead commission into North sea industry

Edward Davey, Secretary of State, has recently visited Aberdeen to engage in talks with oil and gas industry leaders. The talks come in light of a dramatic reduction in the world retail price of oil.

Davey announced that he intends to request Andy Samuel, CEO designate of the Oil and Gas Authority, to lead an urgent commission. The purpose is to consult with industry to look at oil and gas production in the UKCS and consider further measures to combat the dramatic price reduction.

Davey said:

“The oil and gas industry is used to volatile prices in world markets and will get through the latest downturn as it has in the past. However, given the huge value of the UKCS to the nation and the relatively high cost base that it has, I am concerned to make sure that it does so in the best possible shape for the future and well placed to deliver our goal of maximising economic recovery as set out by Sir Ian Wood.” “I am therefore today asking Andy Samuel, CEO of the new Oil and Gas Authority, to undertake an urgent piece of work, involving industry, to come up with practical measures to mitigate the immediate risks that the downturn in prices presents us with. There is a lot at stake and I know that industry leaders will lend weight to the work that I have asked Andy to do. I have asked Andy to present his early findings to me by the end of February.”