Consultation outcome

Maximising Economic Recovery of Offshore UK Petroleum: Draft Strategy For Consultation

This consultation has concluded

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Detail of outcome

Government considered the submitted written evidence and feedback from two workshops (Aberdeen, 13 November 2015 and London, 24 November 2015), and laid a revised Strategy in the House of Parliament for scrutiny on 28 January 2016.

Maximising economic recovery of UK petroleum: the draft MER UK strategy

The Government Response document published on February 5 2016, summarises the feedback Government has received in response to the Consultation. It also describes how Government has considered this feedback, including the rationale behind any of the changes that have been made to the Draft MER UK Strategy. When considering revisions to the Draft MER UK Strategy, Government has been mindful of the need to maintain investor confidence while remaining true to the principles and recommendations set out in the Wood Review.

The revised Draft Strategy seeks to create clear obligations on the OGA and offshore petroleum licence holders, operators appointed under those licences, owners of upstream petroleum infrastructure and persons planning and carrying out the commissioning of such infrastructure. They are required to act in accordance with those obligations in order to maximise the value of economically recoverable resources from the UK Continental Shelf.

Many of these obligations derive directly from the recommendations outlined in the Wood Review, such as a requirement to collaborate and cooperate with others.

To provide appropriate balance, the Strategy also sets out some fundamental safeguards for industry in the application of the obligations set out in the Strategy. These include; clarification that the Strategy does not cut across other regulatory requirements such as those required under Health and Safety legislation; that those bound by the Strategy can expect to receive compensation in respect of any investment they make for the benefit of others; and that no obligation under the Strategy should lead to those bound by it to make less than a satisfactory expected commercial return.

Original consultation

This consultation ran from to


This consultation seeks views on a draft strategy for maximising economic recovery of Petroleum from the United Kingdom Continental Shelf


Consultation description

Consultation seeking views on a draft strategy for maximising economic recovery of petroleum from the United Kingdom Continental Shelf.

Section 9A of the Petroleum Act 1998 creates an obligation on the Secretary of State to produce a Strategy for achieving the Principal Objective of maximising the economic recovery of UK petroleum. Section 9G of that Act requires the Secretary of State to produce a draft of the Strategy and to consult such persons as she considers appropriate about the draft.

This Consultation invites views on the suitability of this draft in particular from all those who will be subject to the Strategy. The Strategy, once in force, would be binding on holders of offshore petroleum licences; operators appointed under those licences; operators of upstream petroleum infrastructure; and persons planning and carrying out the commissioning of upstream petroleum infrastructure.