In an announcement posted on its web site this week, the North Sea Transition Authority (NSTA) introduced that Perenco UK Restricted (Perenco) has been fined GBP 225,000 ($281,089), which the regulator highlighted is the very best ever monetary penalty it has handed out.
The tremendous got here for venting 59 tons of fuel for over a month from its Dimlington onshore fuel processing plant with out consent, the NSTA revealed.
“The corporate had permission to vent 235 tons from January 1 – December 31, 2022, however exceeded that restrict on November 6 and vented the additional fuel till a brand new consent was issued on December 14, 2022,” the NSTA mentioned within the assertion.
“Perenco acknowledged that it had techniques to trace the every day volumes of fuel it emitted. Nonetheless, there was an absence of inside mechanisms to make sure that any dangers recognized by way of this method have been appropriately actioned,” the NSTA added.
Within the assertion, the NSTA famous that the central goal of the monetary penalty on this case is deterrence, “with the penalty being set at a ample degree to mirror this and the seriousness of the breach, in addition to Perenco’s delayed engagement with the NSTA within the lead-up to figuring out {that a} breach had occurred”.
The NSTA mentioned within the assertion that it goals to eradicate pointless or wasteful flaring and venting of fuel.
“The OGA Technique features a requirement for trade to cut back greenhouse fuel emissions from sources equivalent to flaring and venting to help the drive to internet zero,” the NSTA added.
“To assist that, the NSTA displays efficiency and works with trade to cut back emissions,” it continued, highlighting that, in September 2023, it reported that North Sea emissions had been minimize for 3 years in a row and that there had been a 23 % drop in whole emissions since 2018.
“The OGA Plan locations additional emphasis on emissions discount requiring trade to undertake a spread of decarbonization measures together with taking actions to assist zero routine flaring and venting by 2030,” the NSTA went on to state.
Jane de Lozey, the NSTA Director of Regulation, mentioned within the assertion, “decreasing greenhouse fuel emissions, whereas sustaining UK power provide, is crucial, and we acknowledge trade’s response to each of these challenges”.
“Working inside consent and immediate engagement with the NSTA helps keep confidence within the sector. Nonetheless, as … [this] tremendous demonstrates, we’ll take agency motion for any failures to fulfill regulatory obligations,” de Lozey added.
In an announcement despatched to Rigzone, Perenco mentioned it was “disenchanted to study of the extent of tremendous imposed by the NSTA for an unintentional exceedance of its 2022 annual vent consent” and added that “consent was finally obtained in direction of the tip of 2022 protecting the surplus volumes vented within the latter a part of that yr”.
“Perenco acknowledges its failure to acquire consent in a well timed method and has put in place measures to forestall this from occurring once more,” the corporate went on to state.
In that assertion, Jo White, the Normal Supervisor of Perenco UK, mentioned, “Perenco is firmly dedicated to its ESG commitments and has lowered its whole emissions from the SNS enterprise unit by 29 % between 2018 and 2022”.
“Venting volumes have been declining since 2022 and we’re actively working to establish methods of additional decreasing our emissions, in step with UK targets and Internet Zero 2050,” White added.
Perenco UK described itself as a number one supplier of power to the UK in that assertion, including that it has been current within the UK Southern North Sea Basin since 2003 and that it has operated Europe’s largest onshore oil area at Wytch Farm since 2011.
The assertion famous that, within the North Sea, Perenco UK processes nearly 15 % of the UK nationwide fuel manufacturing and that the corporate owns and operates the most important infrastructure on the UK Continental Shelf. This includes 45 offshore platforms, 14 subsea wells, and a community of greater than 2,400km of pipelines linked to its two onshore terminals at Bacton and Dimlington, the assertion identified.
Perenco UK produces roughly 40,000 barrels of oil equal per day, of which roughly 10,000 barrels is from Wytch Farm, during which Perenco UK holds a 95 % share, the assertion highlighted. The corporate is a part of the UK based mostly Perenco group, which produces from a number of different international locations across the globe, in response to its web site.
Earlier this month, the NSTA introduced that NEO Power Manufacturing UK Restricted had been fined GBP 100,000 ($124,965) for breaching its mixed vent consent for the Donan, Lochranza, and Balloch fields, round 200km northeast of Aberdeen.
Rigzone requested NEO Power and trade physique Offshore Energies UK (OEUK) for touch upon the NSTA assertion on the time. Neither group responded to Rigzone with a remark.
To contact the writer, e mail andreas.exarheas@rigzone.com