Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what assessment they have made of the risk that oil and gas operators in the UK sector of the North Sea may default on their decommissioning obligations; and what measures are in place to prevent taxpayer liability in the event of an operator’s insolvency.

The ‘Offshore Petroleum Regulator for Environment and Decommissioning’ (OPRED) monitors North Sea operators’ financial and commercial activities to ensure Government has an accurate picture of industry capacity to honour its decommissioning liabilities. OPRED regularly undertakes decommissioning risk analysis in relation to North Sea offshore installations. The Petroleum Act 1998 provides the Secretary of State for Energy Security and Net Zero, The Rt Hon Ed Miliband MP, with powers to serve legally binding notice on offshore operators to pay for their respective decommissioning programmes. If necessary, OPRED, on behalf of the Secretary of State for Energy Security and Net Zero, can oblige operators to provide additional financial security to further minimise tax-payer liability.