The North Sea Transition Authority (NSTA) has fined North Sea licensee EnQuest Heather Limited a total of £16.5 million for failing to decommission 33 inactive wells.

“Timely decommissioning is essential to protect the wider environment, prevent extra costs to the taxpayer and support jobs in the supply chain,” said the NSTA.

“The cumulative fine is for protracted non-compliance on 33 wells under four separate licences on Alma, Galia, Broom, and Dons fields. The penalty for each breach is £500,000.

“The Alma, Galia, Broom, and Dons fields ceased production between summer 2020 and spring 2021. The 33 wells which are the subject of the fines have been awaiting decommissioning since this time. Decommissioning is the final step of the process and is only required when a well, or other piece of infrastructure, has no further use.

“The NSTA is determined to support production and energy security. It works with industry to support production from reservoirs and highlights tools to optimise production, as well as encouraging work to extend the life of existing wells through targeted interventions. But it is important that, once all other viable options have been exhausted, wells are properly decommissioned.

“The NSTA has repeatedly warned operators that delaying this work could increase the cost to the Exchequer and therefore the public, because the costs are tax-deductible, potentially resulting in significant tax refunds. Safe decommissioning is also important as government believe it is essential for the long-term protection of the marine environment.”

NSTA CEO Stuart Payne said: “Safe and timely decommissioning is an essential part of doing business in the North Sea. Delivering on commitments and obligations also helps to provide the reliable, steady flow of activity that our world-class supply chain has stated time and again is vital to its survival.

“Delays to decommissioning, and any reduction in supply chain capacity risks adding additional costs for the UK taxpayer.

“The NSTA is focused on supporting energy security and works with operators on ensuring economic recovery. It is now, more than ever, important to ensure that the North Sea is operating efficiently and clear regulation demonstrates stability and encourages investment, which can help boost production.”