North Sea Transition Authority
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The North Sea Transition Authority (NSTA), known as the Oil and Gas Authority (OGA) until March 2022, is a
private company limited by shares A private company limited by shares is a class of private limited company incorporated under the laws of England and Wales, Hong Kong, Northern Ireland, Scotland, certain Commonwealth jurisdictions, and the Republic of Ireland. It has shareh ...
wholly owned by the
Secretary of State for Energy Security and Net Zero The Secretary of State for Energy Security and Net Zero is a Secretary of State in the Government of the United Kingdom, with responsibility for the Department for Energy Security and Net Zero. The incumbent is a member of the Cabinet of the Un ...
. It is responsible for maximising the economic recovery of
oil An oil is any nonpolar chemical substance that is composed primarily of hydrocarbons and is hydrophobic (does not mix with water) and lipophilic (mixes with other oils). Oils are usually flammable and surface active. Most oils are unsaturate ...
from the
North Sea The North Sea lies between Great Britain, Denmark, Norway, Germany, the Netherlands, Belgium, and France. A sea on the European continental shelf, it connects to the Atlantic Ocean through the English Channel in the south and the Norwegian Se ...
. It is empowered to license and regulate activity in relation to oil and gas in the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...
, including
oil and gas exploration Hydrocarbon exploration (or oil and gas exploration) is the search by petroleum geologists and geophysicists for hydrocarbon deposits, particularly petroleum and natural gas, in the Earth's crust using petroleum geology. Exploration methods ...
,
carbon capture and storage Carbon capture and storage (CCS) is a process by which carbon dioxide (CO2) from industrial installations is separated before it is released into the atmosphere, then transported to a long-term storage location.IPCC, 2021Annex VII: Glossary at ...
, and offshore gas storage. The NSTA’s role is to take the steps necessary to: Established in April 2015 as a
non-departmental public body In the United Kingdom, non-departmental public body (NDPB) is a classification applied by the Cabinet Office, Treasury, the Scottish Government, and the Northern Ireland Executive to public sector organisations that have a role in the process o ...
of the then
Department for Business, Energy and Industrial Strategy The Department for Business, Energy, and Industrial Strategy (BEIS) was a Departments of the Government of the United Kingdom, ministerial department of the Government of the United Kingdom, United Kingdom Government, from July 2016 to Februar ...
(now the
Department for Energy Security and Net Zero The Department for Energy Security and Net Zero (DESNZ) is a Departments of the Government of the United Kingdom, ministerial department of the Government of the United Kingdom. It was established on 7 February 2023 by a February 2023 British ...
), on 1 October 2016 the Oil and Gas Authority was incorporated, with the then Secretary of State for Business, Energy and Industrial Strategy (now the Secretary of State for Energy Security and Net Zero), the sole shareholder and headquartered in
Aberdeen Aberdeen ( ; ; ) is a port city in North East Scotland, and is the List of towns and cities in Scotland by population, third most populous Cities of Scotland, Scottish city. Historically, Aberdeen was within the historic county of Aberdeensh ...
with another office in London, which is also its registered company address. As of the 22 October 2024, Liz Ditchburn is the chair.


History

In June 2013, the
UK government His Majesty's Government, abbreviated to HM Government or otherwise UK Government, is the central government, central executive authority of the United Kingdom of Great Britain and Northern Ireland.
asked Sir Ian Wood of
Wood Group John Wood Group plc, commonly known as Wood, is a British multinational engineering and consulting business with headquarters in Aberdeen, Scotland. It is listed on the London Stock Exchange. As of February 2025, the group employs 35,000 people ...
to conduct a review to maximise the recovery of oil and gas from the
UK Continental Shelf The UK Continental Shelf (UKCS) is the region of waters surrounding the United Kingdom, in which the country has mineral rights. The UK continental shelf includes parts of the North Sea, the North Atlantic, the Irish Sea and the English Channel; t ...
. One of the recommendations of the Wood Review was the creation of an independent
economic regulator A regulatory agency (regulatory body, regulator) or independent agency (independent regulatory agency) is a government authority that is responsible for exercising autonomous jurisdiction over some area of human activity in a licensing and regu ...
for the sector. Subsequently the OGA was launched on 1 April 2015 as an
executive agency An executive agency is a part of a government department that is treated as managerially and budgetarily separate, to carry out some part of the executive functions of the United Kingdom government, Scottish Government, Welsh Government or No ...
of the
Department of Energy and Climate Change The Department of Energy and Climate Change (DECC) was a Departments of the Government of the United Kingdom, department of the government of the United Kingdom created on 3 October 2008, by Prime Minister Gordon Brown to take over some of the ...
. The Energy Act 2016, which received Royal Assent in May 2016, created the legislative framework to formally establish the OGA as a government company, limited by shares under the Companies Act 2006, with the then Secretary of State for Business, Energy and Industrial Strategy (now the Secretary of State for Energy Security and Net Zero) the sole shareholder. The Energy Act 2016 also provided the OGA with new regulatory powers, including the ability to participate in meetings with operators, to have access to data, provide dispute resolution and introduce a range of sanctions such as enforcement notices and fines of up to £1 million. On 6 March 2019, Frances Morris-Jones was replaced by Tim Eggar as the chairman of the authority.


Fracking

On 1 November 2019, following a report from the Oil and Gas Authority, the government called a halt to all
fracking Fracking (also known as hydraulic fracturing, fracing, hydrofracturing, or hydrofracking) is a well stimulation technique involving the fracturing of formations in bedrock by a pressurized liquid. The process involves the high-pressure inje ...
in the UK "with immediate effect" and warned shale gas companies that it would not support future projects.


Corporate information


Name

On 1 July 2015, ''Oil and Gas Authority Limited'' was incorporated as a private limited company in
England and Wales England and Wales () is one of the Law of the United Kingdom#Legal jurisdictions, three legal jurisdictions of the United Kingdom. It covers the constituent countries England and Wales and was formed by the Laws in Wales Acts 1535 and 1542. Th ...
under the
Companies Act 2006 The Companies Act 2006 (c. 46) is an act of the Parliament of the United Kingdom which forms the primary source of UK company law. The act was brought into force in stages, with the final provision being commenced on 1 October 2009. It largel ...
, although following incorporation it remained dormant for
financial year A fiscal year (also known as a financial year, or sometimes budget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. La ...
2015-2016. Pursuant to the
Energy Act 2016 The Energy Act 2016 (c. 20) is an Act of the Parliament of the United Kingdom relating to UK enterprise law and energy in the UK. It created a new Oil and Gas Authority, meaning that a quango rather than a government minister deals with the oi ...
, ''Oil and Gas Authority Limited'' was renamed ''Oil and Gas Authority'' on 12 July 2016''.'' Under the Companies Act 2006, private limited companies are required to include the word "limited" in their names unless exempted; the Energy Act 2016 provided for such an exemption, which
came into force In law, coming into force or entry into force (also called commencement) is the process by which legislation, regulations, treaties and other legal instruments come to have legal force and effect. The term is closely related to the date of this ...
on 12 July 2016. On 21 March 2022, the Oil and Gas Authority adopted the
trading name A trade name, trading name, or business name is a pseudonym used by companies that do not operate under their registered company name. The term for this type of alternative name is fictitious business name. Registering the fictitious name with ...
of ''North Sea Transition Authority'', although its legal name remains unchanged. In a
House of Commons The House of Commons is the name for the elected lower house of the Bicameralism, bicameral parliaments of the United Kingdom and Canada. In both of these countries, the Commons holds much more legislative power than the nominally upper house of ...
debate on 29 March 2022,
Caroline Lucas Caroline Patricia Lucas (born 9 December 1960) is a British politician who was the leader of the Green Party of England and Wales from 2003 to 2006, 2007 to 2012, and 2016 to 2018. She was Member of Parliament (United Kingdom), Member of Parli ...
accused the government of
greenwashing Greenwashing (a compound word modeled on "whitewash"), also called green sheen, is a form of advertising or marketing spin that deceptively uses green PR and green marketing to persuade the public that an organization's products, goals, or ...
over the change of name. Following this, on 31 March 2022,
Greg Hands Gregory William Hands (born 14 November 1965) is a British politician who served as Minister for London and Minister of State for Trade Policy from November 2023 to July 2024. He was the Member of Parliament (MP) for Chelsea and Fulham, pre ...
, Minister for Energy, Clean Growth and Climate Change, said in a written statement to the House of Commons that " e new name better represents the breadth of work it now undertakes and its pivotal role in supporting the UK upstream oil and gas industry to achieve net zero emissions."


Functions, powers, and property

Under Part 1 of the Energy Act 2016, the function, powers, and property of the
Secretary of State for Energy Security and Net Zero The Secretary of State for Energy Security and Net Zero is a Secretary of State in the Government of the United Kingdom, with responsibility for the Department for Energy Security and Net Zero. The incumbent is a member of the Cabinet of the Un ...
may be transferred to the Oil and Gas Authority by way of a statutory instrument.


Personnel

Part 1 of the Energy Act also provides for the Secretary of State to transfer staff working for the
Department for Energy Security and Net Zero The Department for Energy Security and Net Zero (DESNZ) is a Departments of the Government of the United Kingdom, ministerial department of the Government of the United Kingdom. It was established on 7 February 2023 by a February 2023 British ...
to the Oil and Gas Authority. From 2015 until December 2022, Andy Samuel was
chief executive A chief executive officer (CEO), also known as a chief executive or managing director, is the top-ranking corporate officer charged with the management of an organization, usually a company or a nonprofit organization. CEOs find roles in variou ...
, being replaced b
Stuart Payne
in January 2023, and since 2019
Tim Eggar Timothy John Crommelin Eggar (born 19 December 1951) is a British businessman and former politician. He holds positions on the boards of multiple organisations including Shiplake College and Cape plc, and was the Conservative MP for Enfield ...
has been
chairman The chair, also chairman, chairwoman, or chairperson, is the presiding officer of an organized group such as a board, committee, or deliberative assembly. The person holding the office, who is typically elected or appointed by members of the gro ...
of the
board Board or Boards may refer to: Flat surface * Lumber, or other rigid material, milled or sawn flat ** Plank (wood) ** Cutting board ** Sounding board, of a musical instrument * Cardboard (paper product) * Paperboard * Fiberboard ** Hardboard, a ...
. In September 2021
Greenpeace Greenpeace is an independent global campaigning network, founded in Canada in 1971 by a group of Environmental movement, environmental activists. Greenpeace states its goal is to "ensure the ability of the Earth to nurture life in all its biod ...
reported that eight of OGA's 13 board members and senior managers had previously worked in the industry, and three held sizeable shareholdings in oil firms. The OGA said their knowledge was vital in helping to regulate the sector.


Ownership

Oil and Gas Authority has one
ordinary share Common stock is a form of corporate equity (finance), equity ownership, a type of security (finance), security. The terms voting share and ordinary share are also used frequently outside of the United States. They are known as equity shares or or ...
, which from 2016 until 2023 was owned by the Secretary of State for Business, Energy and Industrial Strategy. Its owner remained unchanged, with each subsequent confirmation statement showing no
shareholder A shareholder (in the United States often referred to as stockholder) of corporate stock refers to an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the ...
changes,See Confirmation statements filed for Oil and Gas Authority for 2017, 2018, 2019, 2020, 2021, and 2022 a
Companies House
until 3 May 2023 when it was transferred to the Secretary of State for Energy Security and Net Zero by
order in council An Order in Council is a type of legislation in many countries, especially the Commonwealth realms. In the United Kingdom, this legislation is formally made in the name of the monarch by and with the advice and consent of the Privy Council ('' ...
upon the incorporation of that office.


Notes


References


External links


Official website

Wood Review website
{{Authority Control Department of Energy and Climate Change Government-owned companies of the United Kingdom Regulators of the United Kingdom Energy regulatory authorities Department for Business, Energy and Industrial Strategy