Page 12 - EurOil Week 12 2022

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UK North Sea makes makes progress

implementing North Sea deal

UK THE UK North Sea oil and gas industry has Engineering are working on three projects in this
made significant progress in implementing year, which have received £1mn ($1.3mn) from
The government and the North Sea transition deal it agreed with the the UK government.
the industry signed the government in March last year, the UK’s depart- “There will continue to be a requirement for
transition deal last year. ment for business, energy and industrial strategy oil and gas over the coming years, with fossil
(BEIS) reported on March 21. fuels continuing to play a role in the UK to 2025,”
Under the deal, the industry pledged to BEIS said in a statement. The UK government
reduce their greenhouse gas emissions (GHG) has increased its focus on expanding domestic
by 10% by 2025, by 25% by 2027 and by 50% by oil and gas production in recent weeks, as it looks
2030, using the level in 2018 as a baseline. The to wean the country off Russian energy imports
end goal is net-zero emissions by 2050. while also seeking to avoid too great a spike in
BEIS estimates that upstream GHG emissions energy prices. The government has called for oil
from the UK North Sea have dropped by 11% and gas licensing to resume and has even said
since 2018, thanks in part to declines in flaring it will keep an “open mind” regarding onshore
and methane venting. All new North Sea devel- hydraulic fracturing for shale gas.
opments should avoid any routine flaring and In addition, industry regulator Oil and Gas
venting, and operators will have to achieve zero Authority (OGA changed its name on March 21
routine flaring and venting across their assets by to reflect its changing role as the energy transi-
2030. tion gains momentum. In addition to oil and gas
A key way that this is to be achieved is by elec- activities, OGA will also take charge of licensing
trifying offshore facilities, primarily powering and permitting for carbon storage sites, as well as
them with offshore wind turbines. Orstad, Orca- monitor emissions using a new “net zero test” for
dian Energy and engineering consultant Katoni new developments. ™

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