WIRELINE ISSUE 27 SPRING 2014

SIR IANWOOD

Q&A

the secretaryof state (EdwardDaveyMP) has indicated that hewishes to see thenew regulator, at least in shadow form, up and running later this yearwith the chief executive appointed hopefullyduring the summer.Thenew regulatorwill then set its ownpriorities but inmyview these should include significantly enhancing the exploration effort; improvingproduction performance and increasing reservoir recovery; tackling the rampant cost escalation in thebasin; facilitatingbothbetter deployment of current technology and thedevelopment of new technology; and establishing a strong relationshipwith HMTreasury.

greater co-ordination and collaboration across the industry and between industry andgovernment. I see thenew regulator largely working in the role as facilitator andmediator, actively removing barriers and encouragingmore efficient exploration, development andproduction. Its rolewill be to influence andguide investment decisions towards achieving theMERUK strategy.

Q:Does thismeanheavier regulation for the industry?

A:Theproposals arenot about heavier, stricter regulation. They are aboutmoreproactive, effective stewardship focused on achieving collaboration.We havemanyvery fineoperators on theUKCS andwewant to encourage them to stay and attract evenmore to thebasin. Thedevelopment of theUKCS must continue tobe ledby these operators.Theyprovide the significant investment of funds, expertise and experience and must be allowed a fair return for that investment.The regulator

“To effectively supervise and steward our mature basin, we need a stronger regulator with broader skills and capabilities. It must have the experience and capacity to act as the catalyst to promote greater co-ordination and collaboration across the industry and between industry and government.”

Q:What hasmost surprised youover the last eightmonthswhilst conducting this review? A:Therewas significant industry insight into theUKCS challenges and consistent backing for a stronger,moreproactive and effective regulator to facilitatemuchmore industry collaboration.

mustworkwith industry to try and re-stimulate exploration activity, achieve regional collaboration for cluster developments, andwork to achieve thekeyobjectives and activities outlined in the six strategies.Theultimateobjective is tomaximise recovery of our oil andgas resource, attractmoreplayers and investment, and thiswill be to thebenefit of all parties. Q: Both thegovernment and industryhavegiven their backing to theproposals, including the settingupof thenew regulator.What are thepriorities now? A.Thegoodnews is that thegovernment has accepted themain recommendations from the review andgiven thego ahead for fast track implementation.This is nowverymuch in thehands of theDepartment of Energy&ClimateChange (DECC), and

Secondly, theUK is not just amature region.There are some interesting frontier areas andnewplays and additional exploration incentives are essential. Thirdly, there is a significant interest and commitment from government, particularlyDECC andTreasury, tomaximise recoveryof our offshore resources.

Formore informationand to download the full report, visit www.woodreview.co.uk.

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