UK Government to double inspections of North Sea rigs

Greenwise Staff

8th June 2010

The UK Government is to increase the number of inspections of North Sea drilling rigs and has launched a new industry group to look at the UK’s ability to prevent and respond to oil spills, following the Gulf of Mexico disaster.

Energy Secretary Chris Huhne announced the decision to double the number of annual inspections and the creation of the Oil Spill Prevention and Response Advisory Group (OSPRAG) today. The group, met for the first time on Wednesday to examine the UK’s strengths and weaknesses in responding to an incident of the magnitude of the ruptured BP well in the Gulf of Mexico. The oil spill is being described as the biggest environmental disaster in US history.

Yesterday, BP boss Tony Hayward said safety standards at the British energy giant and the wider industry would have to be stepped up significantly to avoid another environmental catastrophe on the level seen at its Deepwater Horizon well.

Huhne said the UK’s safety and environmental regulatory regime was among the most robust in the world and "was fit for purpose". But he said the Gulf incident had given the UK Government "pause for thought".

"Given the beginning of exploration in deeper waters West of Shetland, there is every reason to increase our vigilance," he said. "The events unfolding in the Gulf of Mexico are devastating and will be enduring."

He said "an urgent review" was already underway "to reassure myself and the public that all appropriate measures are in place around our shores".

As well as doubling the number of annual inspections to drilling rigs, the Department of Energy and Climate Change (DECC) is reviewing the indemnity and insurance requirements for operating in the UK Continental Shelf. DECC is responsible for licensing, exploration and regulation of oil and gas developments on the UK Continental Shelf. It also regulates the environmental aspects of the oil and gas industry.

Following the Piper Alpha disaster in 1988, the UK introduced some of the most stringent safety regulations in the world, including guaranteeing that all operators have detailed safety cases that analyse the potential dangers on an installation, the consequences of any incident and their methods of controlling these risks.

Highest practices

But Huhne said it was his responsibility to make sure the oil and gas industry maintained "the highest practices here in UK waters".

He said he would review "new and existing procedures" in the UK oil and gas industry as soon as the detailed analysis of the factors that caused the incident in the Gulf of Mexico were available. He will also examine the findings of OSPRAG, which has been created by industry trade association Oil and Gas UK and is made up of regulators, oil companies and DECC.

"What we are seeing will transform the regulation of deep water drilling worldwide," said Huhne.

Energy Minister Charles Hendry will be speaking on the issue at the Chatham House event 'Sustainable Energy Security: Strategic Risks and Opportunities for Business’ on Tuesday.