Tuesday 18 May 2004

UKOOA Consults on the Industry Code of Practice on Access to Infrastructure

The UK Offshore Operators Association (UKOOA) is consulting stakeholders in the oil and gas industry on fundamental revisions to its code of practice on access to infrastructure on the UK continental shelf (UKCS). 

The industry trade body has been working with the Department of Trade and Industry to secure changes to the code that will open up better access to the pipeline systems in the North Sea.  Access to infrastructure is seen as a key to unlocking future oil and gas volumes in the UKCS, since many of todays new fields are too small to support their own cost-intensive production facilities and need to use existing systems to make them commercially viable. 

The new Code aims to secure greater transparency in pipeline tariffs and operation as well as fair and reasonable terms for third party access to existing infrastructure.  All technical data as well as commercial terms and conditions for all deals would be published and the Secretary of State given an automatic invitation to step into negotiations if a deal is not resolved within six months.

The consultation will run until 12 June 2004 and it is hoped that the new Code will be adopted by all UKCS licensees by July 2004.

Note to Editors

1. A work group was set up in 2003 under the PILOT initiative examining exploration and appraisal drilling activity in the UKCS to revise the existing code of practice on access to infrastructure.  The original code was agreed by the industry in 1996.

2. The UK Offshore Operators Association is the representative organisation for oil and gas exploration and production companies operating on the UK continental shelf around the British Isles.  It has 30 members.

For more information, please call 020 7802 2400.