New Regulations to Adjust Fees for Offshore Oil and Gas Industry

In a bid to ensure that the offshore oil and gas industry shoulders its fair share of regulatory costs, the UK government is set to revise the fees associated with its environmental management services. This change, coming into effect in mid-2025, will see an increase in the hourly rates charged for regulatory activities conducted by the Department for Energy Security & Net Zero's Offshore Petroleum Regulator for Environment and Decommissioning (OPRED).

What’s Changing?

The new regulation, officially titled the Pollution Prevention and Control (Fees) (Miscellaneous Amendments) Regulations 2025, is designed to update the hourly rates that determine the fees paid by the offshore hydrocarbons industry. These fees cover a range of regulatory activities, ensuring that the industry, rather than taxpayers, funds these essential services.

The current rates, set in June 2022, are £201 per hour for environmental specialists and £104 per hour for non-specialists. These will rise to £210 and £114 per hour, respectively, aligning with OPRED’s updated cost assessments.

Why the Change?

The adjustment in fees is driven by a detailed review of OPRED’s cost base, which includes salaries, administrative expenses, and corporate services. The increase reflects both inflation and changes in staffing levels, ensuring the department can continue to provide high-quality regulatory oversight without profit.

For the fiscal year 2025/26, OPRED aims to recover approximately £7.3 million, up from £6.7 million, to cover its operational costs.

Who is Affected?

The legislation affects the entire United Kingdom, applying to offshore areas including the UK territorial sea and the UK sector of the Continental Shelf. The revised fees will impact companies operating within this jurisdiction, though the overall increase is modest.

Despite the higher fees, small and micro businesses are not expected to face disproportionate burdens, as regulatory equality is essential for maintaining environmental protection standards.

Consultation and Implementation

In early 2025, OPRED communicated its intentions to the offshore industry, and no objections were raised. The industry is accustomed to periodic reviews and updates of these fees, which are standard practice.

As a result of these changes, the guidance on OPRED’s cost recovery methods will be updated and made available on the government’s website once the new rates are in effect.

Conclusion

These adjustments reflect the government's ongoing commitment to ensuring that the costs of regulating the offshore oil and gas industry are met by those who benefit from the services. The new fee structure will help maintain robust environmental oversight while keeping taxpayer contributions to a minimum.