Tony Durrant, Premier Oil’s boss, has said to press that the Oil and Gas Authority (UK), must be able to force companies to keep pipelines open during low oil prices. He said: “The authority is a new body and I’m not sure it has all the legislative powers it might need to bang heads together.
“It is important we have some overriding authority that could impose solutions if necessary.
“In other countries it would be understood that the host government has an enforcing role.”
Durrant warned of early decommissioning, stating a low oil price could see firms shut facilities they share with other producers – prematurely side-lining fields.
Last month, Premier Oil purchased E.On’s North Sea assets and interests for US$120 million.
Durrant said that closing pipelines early could leave the industry unable to pick up when oil prices rise again.
The authority was set up on the recommendation of North Sea billionaire Sir Ian Wood, who said in a review that co-operation among rivals was vital to maximise production.
Edited from various sources by Elizabeth Corner
Read the article online at: https://www.worldpipelines.com/business-news/10022016/premier-oil-boss-force-companies-keep-north-sea-pipes-open/