The regulatory regime encapsulated in the term ‘maximising economic recovery’ or MER, now administered by the North Sea Transition Authority (NSTA), was introduced in 2015. It emerged from a government-commissioned report by Sir Ian Wood, published in 2014, which recommended the introduction of a new tripartite strategy for MER from the UKCS involving HM Treasury, industry and a new regulator at arm’s length from government.

This was intended to address the problems of an ageing basin in which smaller discoveries meant new fields were more marginal and interdependent than in the past. An increasingly diverse set of companies operating these smaller, more interconnected fields resulted in greater competition for ageing infrastructure and required increased collaboration between operators to ensure that fields remain economical. These factors, coupled with growing competition for investment from outside the UK, had led to significant falls in production, production efficiency and exploration.

The new approach requires regulated persons active in UKCS operations to seek to maximise economic recovery not just from their own assets but across the basin and therefore requires unprecedented levels of collaboration. It has also resulted in a far more hands-on regulator seeking to use both influence and enforcement to radically alter the culture of the UKCS.

This book is not a complete guide to oil and gas industry regulation in the UK; instead, it is specific to the MER UK regime. It describes the legislative changes that introduced the regime, the nature of the NSTA, and how it uses ‘soft power’ to achieve many of its aims. It also describes the regulatory tools at the NSTA’s disposal including the nature of the OGA Strategy and how this can be enforced through sanctions, the right to attend a wide range of industry meetings, request vast amounts of industry data and to get involved in industry disputes. It also discusses the increasing focus of the NSTA on the energy transition.

This book will be of interest to legal practitioners active in energy law whether in private practice or in house, academics and students with an interest in energy regulation and regulators looking at the UKCS as a model for other jurisdictions.

MER is a complicated concept, made all the more complex by recent amendments to the strategy. The intrinsic value of this book is its deep dive into the origins of MER, the changes that have occurred, and the recent shift in name and strategy to the broader energy transition. Trying to piece all of the components of MER is difficult, but this book makes it much easier. This is an exceptional book from exceptionally knowledgeable authors. This book is timely given the importance of MER in the UK's energy transition strategy.
Professor Tina Soliman Hunter
Professor of Energy and Resources Law, Macquarie University

The work is an outstanding feat of synthesis and fresh analysis. It will be an indispensable reference point for all that is subsequently written on this topic. It is essential reading for all practitioners involved in the UK offshore oil and gas industry.
Professor Greg Gordon
University of Aberdeen

Judith Aldersey-Williams
Of counsel, CMS
[email protected]
https://www.linkedin.com/in/judithalderseywilliams/

Judith Aldersey-Williams is part of the CMS Energy & Climate Change Team, based in the Aberdeen office but working internationally, with over 20 years of experience in upstream oil and gas contracts and regulation. She advises energy industry clients on project and supply chain contracts and regulatory matters. She also advises on competition and procurement law. Judith has worked closely with Offshore Energies UK, the trade association representing the offshore energy industry, on a variety of industry initiatives including the industry standard Decommissioning Security Agreement (DSA) and Joint Operating Agreement (JOA).
Her career highpoints have been advising Offshore Energies UK on the development of Decommissioning Relief Deeds, ground-breaking contracts by which the UK government guarantees tax relief for decommissioning, and advising the Subsea Well Response Project, a group of nine multinational oil companies, on contracts for the development and funding of innovative equipment which is now available to enable operators around the world to improve their response to well control incidents. She is rated a “Leading Individual for Oil & Gas in Scotland” by Legal500 who describe her as “a go-to for regulatory, antitrust and commercial contract matters” and as a “Senior Statesperson” by Chambers for Oil & Gas in Scotland.
See website biography for more details: https://cms.law/en/gbr/people/judith-alderseywilliams.

Valerie Allan
Partner, CMS
[email protected]
https://www.linkedin.com/in/valerieallan/

Valerie Allan is an energy disputes partner, based in Scotland but with a practice that extends across the UK and overseas. She specialises in dispute management and resolution in the energy, construction and infrastructure sectors. Valerie has particular expertise in project, joint venture and decommissioning disputes. She is also recognised for her expertise in respect of regulatory issues regarding the Oil & Gas Authority and in supporting clients navigating the growing number and intensity of protestor actions directed at oil companies and their assets.
Valerie is an Acritas-Star rated lawyer and recommended by clients there specifically for her industry knowledge and understanding. She is recognised as a key lawyer for Oil & Gas in Scotland in Legal500 and ranked Band 3 in Chambers for Energy & Natural Resources Disputes (UK-wide). She is a trained mediator and the senior DPLP tutor on mediation for Aberdeen University. She is primarily responsible for CMS’s annual oil & gas disputes survey and regularly presents and contributes to various publications.
See website biography for more details: https://cms.law/en/gbr/people/valerie-allan.