The Oil and Gas Authority (OGA) has officially initiated a comprehensive consultation process for its proposed Governance Guidance, aligning with the Supporting Obligation outlined in paragraphs 3 and 4 of the OGA Strategy. This guidance outlines the criteria the OGA will typically evaluate regarding the adequacy of a licensee’s governance arrangements.
Key Details of the Consultation:
- Duration: The consultation period spans 8 weeks, concluding on Friday, 12 November.
- Industry Workshop: An industry workshop, in collaboration with OGUK, is anticipated to occur during the week of 4 October.
Focus Areas of the Proposed Guidance:
The proposed Governance Guidance zeroes in on several critical aspects:
- Corporate Governance Code: Emphasis on the adoption and application of a recognized corporate governance code by a Relevant Board (RB), tailored to the licensee’s size and characteristics.
- OGA Strategy Principles: The adoption and application of specific principles from the OGA Strategy by the RB.
- Commitment to Net Zero: A commitment from the RB to actively contribute to the UK Government’s net-zero target, aligning with climate reporting standards, and considering corporate social responsibilities.
- Monitoring Compliance: Insight into how the OGA will oversee compliance with the proposed Guidance, including requiring the RB to account for its adherence and future alignment with the Guidance.
Stay engaged with the evolving landscape of governance in the oil and gas sector as the OGA navigates towards enhanced industry standards and sustainable practices. Participate in the consultation to make your voice heard and contribute to shaping the future of governance in the energy sector. Your insights matter in driving a resilient and responsible industry forward.
Be part of the conversation and stay tuned for updates during this pivotal consultation period. Together, we can build a governance framework that propels the industry towards a more sustainable and accountable future.