Senior BG Group executive Andy Samuel has been named as the inaugural chief executive of the Oil and Gas Authority.
The new Aberdeen-based industry regulator will come on-stream in April and will be responsible for implementing the recommendations of the Wood Review and maximising recovery on the UK Continental Shelf (UKCS).
The announcement of Mr Samuel’s appointment came as Energy Secretary Ed Davey issued a call to the industry to submit its views on the Maximising Economic Recovery UK strategy, the scope of OGA’s regulatory powers and sanctions regime, and the cost recovery mechanism.
Mr Samuel has been appointed for a fixed three-year term, with a further three-year option depending on performance.
He said he was looking forward to leading the new industry watchdog as the North Sea entered a new era.
“I know first-hand the challenges industry currently faces and am confident that implementing the vision set out in the Wood Review will create a strong future for the UK’s oil and gas industry,” Mr Samuel said.
“I have much enjoyed my time at BG Group, with a lot to be grateful for, and am now looking forward to establishing the OGA and setting its priorities in the New Year.”
Sir Ian Wood author of the Wood Review, which estimated that a further four billion barrels of extra oil could be recovered from the UKCS through better industry collaboration and the adoption of new extraction techniques said that Mr Samuel’s new role was central to the long-term effectiveness of the new industry regulator.
He said: “The OGA will need to work very closely with industry over the coming years, and Andy’s impressive experience and the significant credibility he holds within the industry will put him in a very strong position to encourage the industry collaboration that is needed as we enter the next phase of the UKCS.”
The new CEO has spent the past 19 years with BG Group and has been managing director for European exploration and production since 2012.
He was previously president and general manager of the US Exco Appalachia joint venture, where he had responsibility for BG Group’s Marcellus shale play and associated developments, had also served as chief operating officer of BG Trinidad and Tobago, and was a board member of Atlantic LNG.
The Energy Secretary welcomed Mr Samuel’s appointment as he opened a new industry consultation, which will run until December 31, on the Wood Review recommendations.
He said: “It’s vital for Government to work closely with industry to maintain Britain’s energy security, and Andy is superbly placed to steer the OGA to maximise the economic recovery of our oil and gas resources.
“We’re also asking industry for their views to make sure we implement the Wood Review recommendations in the most efficient and practical way.”
Chief secretary to the Treasury Danny Alexander said Mr Samuel’s new role would not only see him shape the future of North Sea oil extraction but also play a key role in the development of the wider UK economy.
“Oil and gas is one of the UK’s most valuable industries, supporting 450,000 jobs in Scotland and across the country,” he said.