NSTA warns that rig operators will seek work overseas if delays continue
North Sea operators have been warned that they could be fined if they continue to delay on the decommissioning of oil and gas wells.
Industry regulator the North Sea Transition Authority (NSTA) said firms were “running out of time” to tackle a backlog of more than 500 wells to be plugged.
The cost – estimated at £41bn – is shared between the private sector and the taxpayer. It said that further hold-ups would cost a further £4bn.
Offshore Energies UK (OEUK) said “policy instability” in the industry had created uncertainty, but said the sector was still committed to decommissioning.
When an oil well comes to the end of its life, its operator has a responsibility to permanently decommission it.
NSTA began an investigation after identifying hundreds that had missed plugging deadlines.
It said that any delays risk rig operators and others in the supply chain moving their vessels out of the North Sea to seek work elsewhere.
The regulator said that this would push up the costs in the long run.
Getty Images
There are not enough rigs in UK waters to carry out the forecast decommissioning work
If the backlog is not addressed, NSTA said there could be more than 1,000 additional wells due for decommissioning by the end of the decade.
Pauline Innes, NSTA director of supply chain and decommissioning, urged operators to act immediately.
She said: “The stark reality is that operators are running out of time to get to grips with the backlog as more contractors consider taking their rigs abroad, which damages the supply chain’s ability to meet demand and remain cost competitive.”
She said NSTA was prepared to help operators when necessary but would “get tough” on those who continually delay.
Significant uncertainty
In 2024, only 103 wells were decommissioned to the final abandonment stage with some form of work being carried out on 223 wells.
But 300 need to be fully commissioned each year if the backlog is to be cleared.
Industry body OEUK said businesses were actively progressing their decommissioning obligations but that it was a complex undertaking.
Decommissioning manager Ricky Thomson said: “Policy instability, including the Energy Price Levy and pauses in the Environmental Assessment process, has introduced significant uncertainty for the sector resulting in project delays and cost increases.
“The sector is working with the government to provide stable regulatory and fiscal frameworks to continue delivering safe, efficient decommissioning essential to the UK’s economy, environment, and long-term energy future.”
The government said the new Private Parking Code of Practice “aims to create a fairer, more transparent private parking system”.
The British Parking Association, one of two trade associations that oversees the industry, has said it will work closely with the government throughout the consultation.
Local growth minister and Nottingham North and Kimberley MP Alex Norris said: “From shopping on your local high street to visiting a loved one in hospital, parking is part of everyday life. But too many people are being unfairly penalised.
“That’s why our code will tackle misleading tactics and confusing processes, bringing vital oversight and transparency to raise standards across the board.”
However, it was withdrawn following legal challenges launched by several parking firms.
This meant the private parking sector has been left to regulate itself, through two accredited trade associations called the British Parking Association (BPA) and International Parking Community (IPC).
Derby North MP calls Excel Parking fine a “five-minute rip-off charge”
Car park operators, which are members of these associations, can obtain drivers’ names and addresses from the Driver and Vehicle Licensing Agency (DVLA) and issue parking charge notices (PCNs) for allegedly breaching terms and conditions.
The government said its new measures would prevent charges caused by issues such as payment machine errors, accidental typos, or poor mobile signal.
However, the AA believes the government’s proposals do not go far enough.
Jack Cousens, head of roads policy, said: “This long-awaited consultation will not please drivers and suggests that government is bending the knee to the private parking industry.”
His concerns include a £100 cap on parking charges, which is higher than the £50 previously proposed.
“We urge all drivers to complete the consultation and submit their views and experiences when dealing with private parking firms,” he said.
Hannah Robinson
Hannah Robinson was asked to pay £11,390 because poor mobile signal meant she took too long to pay
They paid the DVLA for 12.8 million keeper details in the last financial year, which is a 673% increase since 2012.
“While this partly reflects more parking spaces, the current system lacks independent oversight and sufficient transparency,” the Ministry of Housing, Communities and Local Government said.
“At present, operators can avoid sanctions for poor practice, leaving motorists vulnerable to unfair or incorrect charges. The new compliance framework will ensure accountability.”
Under the proposals, operators that breach the code may stop being able to get drivers’ details from the DVLA.
Drivers have been sent £100 PCNs for not entering their registration numbers in full
The BPA said it would work closely with the government throughout the consultation, but said the new code must allow for “proper enforcement”.
“Without proper enforcement, parking quickly becomes a free-for-all, with some people taking advantage at the expense of others,” it said in a statement.
“When spaces are misused, it’s often at the expense of those who need them most, such as disabled people, parents with young children and local residents.
“We believe parking systems must strike a balance: they should deter selfish and anti-social behaviour, but they must also be fair, proportionate, and transparent.”
The National Trust has announced plans to cut 6% of its current workforce, about 550 jobs, partly blaming an inflated pay bill and tax rises introduced by Chancellor Rachel Reeves.
The heritage and conservation charity said it was under “sustained cost pressures beyond our control”.
These include the increase in National Insurance contributions by employers and the National Living Wage rise from April, which the National Trust said had driven up wage costs by more than £10m a year.
The cost-cutting measures are part of a plan to find £26m worth of savings.
“Although demand and support for our work are growing with yearly increases in visitors and donations; increasing costs are outstripping this growth,” the charity said in a statement.
“Pay is the biggest part of our costs, and the recent employer’s National Insurance increase and National Living Wage rise added more than £10m to our annual wage bill.”
A 45-day consultation period with staff began on Thursday and the Trust – which currently has about 9,500 employees – said it was working with the Prospect union “to minimise compulsory redundancies”.
Prospect said though cost pressures were partly to blame, “management decisions” also contributed to the Trust’s financial woes.
The union’s deputy general secretary, Steve Thomas, said “once again it is our member who will have to pay the price”.
“Our members are custodians of the country’s cultural, historic and natural heritage – cuts of this scale risk losing institutional knowledge and skills which are vital to that mission,” he said.
The Trust is running a voluntary redundancy scheme, and is expecting that to significantly reduce compulsory redundancies, a spokeswoman said.
The job cuts will affect all staff from management down, and everyone whose job is at risk will be offered a suitable alternative where available, the spokeswoman added.
Following consultations, which will finish in mid-to-late August, the cuts will be made in the autumn.
Chancellor Rachel Reeves announced the rise in National Insurance contributions by employers in last October’s Budget.
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