UKCS infrastructure access by third parties getting clarification

Dec. 24, 2001
The UK government has begun to clarify and simplify rules allowing third-party access to the oil and gas delivery infrastructure on the UK Continental Shelf.

The UK government has begun to clarify and simplify rules allowing third-party access to the oil and gas delivery infrastructure on the UK Continental Shelf.

The government stressed the action does not involve new regulations but is intended to make access easier for new companies in the sector.

Brian Wilson, the UK energy minister, said that a consultation document would clarify how the government would handle applications to settle disputes over third-party access to oil and gas infrastructure.

Oil companies are being invited to submit their views. Draft proposals will be brought forward in March. The government feels that in some cases infrastructure owners are making unreasonable financial demands on those seeking access.

Wilson said that the government's procedure would ensure that applications are dealt with effectively and expeditiously, avoiding unnecessary expense.

"A key feature in the proposed approach is transparency. We want to encourage as much openness as possible between the parties, in the interests of narrowing the focus of the dispute and reducing the time taken to make a determination.

"We recognize that there is commercial sensitivity surrounding the issues central to a dispute, but I would encourage companies to support this proposed approach by minimizing their use of statutory constraints on disclosure.

"We don't want any monopolistic behavior by infrastructure owners to deter the timely exploration for and development of new fields.

"We expect that if third party access tariffs were more cost-reflective, this would increase exploration of, and ultimately increase production from, the UKCS."