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Code of Practice on Access to Upstream Oil and Gas Infrastructure on the UK Continental Shelf Click here for a copy of the final Code of Practice Code of Practice Annexes Click here for Annex G Click here for Annex H 1, 2 Click here for Annex H 3, 4 Click here to subscribe to receive any changes or bulletins associated with this site. Click here for a list of the companies that have already signed up to this code.     Click here for a copy of the   PILOT Press Release regarding   the launch of the Code of Practice   (15 Sept 2004)   Picture: Mike O'Brien, Energy Minister   and Chair of PILOT 2005 Updates Speaking at a business breakfast at the Ardoe House Hotel, Aberdeen, on 25th February, 2005, Paul Dymond, Operations Director of Oil & Gas UK, said that the Code, launched six months ago by the Energy Minister Mike O’Brien, had made an excellent start. “The new Code is a voluntary agreement between 50 offshore oil and gas companies designed to influence corporate business behaviours in the maturing North Sea province. It aims to improve shared access to pipeline systems and encourage investment both in new developments and those already associated with the existing infrastructure. Information on infrastructure availability, service levels and specifications, which may have been difficult to find in the past, is now freely available through a centralised website (www.ukdeal.co.uk) for some 20 pipeline systems across the North Sea, including all the major routes. There is evidence too that the notifications required by the Code to inform the Government that negotiations have started between owners and potential users are now also starting to flow. And we expect to have the terms of the first deal concluded under the new Code posted on a website shortly. Oil & Gas UK is committed to tracking and facilitating further progress.” Please click here to download a copy of Paul Dymond's presentation at the business breakfast   Introduction Following discussion at PILOT, a small workgroup was convened to develop proposals for a revision of the industry’s Code of Practice for Access to Upstream Infrastructure. This group consisted of individuals from the industry representing users, owners and operators of the infrastructures systems, the DTI and Oil & Gas UK. This Code is relevant to all companies currently doing or prospectively seeking business in the UKCS. It calls on all UKCS licensees, infrastructure owners, operators and prospective users to adhere to its principles. This is a major revision of the 1996 Code of Practice, substantially changed in format, content and intent. The principles of this Code are noted below: Overarching Principles Parties uphold infrastructure safety & integrity and protect the environment Parties follow the Commercial Code of Practice Principles of the Infrastructure Code of Practice Parties provide meaningful information to each other prior to and during commercial negotiations Parties support negotiated access in a timely manner Parties undertake to ultimately settle disputes with an automatic referral to the Secretary of State Parties resolve conflicts of interest Infrastructure owners provide transparent and non-discriminatory access Infrastructure owners provide tariffs and terms for unbundled services, where requested and practicable Parties seek to agree fair and reasonable tariffs and terms, where risks taken are reflected by rewards Parties publish key, agreed commercial provisions. Consultation An initial draft of this Code was publicly available on this website and distributed widely in the industry, to members of Oil & Gas UK, Brindex and OGIA for consultation. There were also two industry workshops run, in Aberdeen and London in June 2004 to allow companies to discuss with members of the work group. Feedback from this was used to finalise this Code. Click on the documents below to download the presentations and the composite response to the entire industry consultation (including associated comments from the work group.) DTI Introduction (pdf downloadable document) Presentation by Paul Dymond, Oil & Gas UK (pdf downloadable document) Composite of Questions Asked During Consultation - directly and at workshops (pdf downloadable document) Following industry consultation and the minor amendments to the Code, the OFT was consulted to address any competition requirements. Their response has been included as Annex B in the Code. Implementation The industry’s Code of Practice for Access to Upstream Infrastructure should be used in conjunction with the DTI’s own Guidance to Parties in Dispute: DTI's Guidance on Upstream Oil and Gas Infrastructure Access Dispute Resolution (This guidance outlines the procedure to be followed and the factors the Secretary of State will follow, when asked to resolve a dispute regarding UKCS infrastructure access.  It updates previous guidelines following new legislation on competition law, discussions with industry and the introduction of the Infrastructure Code of Practice.) Since the start of August there has been a call for all existing UKCS licensees and infrastructure owners to affirm their commitment to this Code, so that the behavioural aspects relating to infrastructure access transactions can be implemented quickly. The new data systems of UKCS infrastructure owners are targeted to be up and running before the end of 2004.  A letter with this request was sent by the DTI & Oil & Gas UK to all existing UKCS Licensees on 10th August 2004.  Companies which subsequently become UKCS licensees or infrastructure owners are requested to do so as soon as practicable.  A list of companies that have responded to date can be viewed at the top of this page. Directors of applicable companies are invited to confirm that their company agrees to commit to the principles and to comply with the provisions of this Code by sending the following in a letter on company headed paper to P Kershaw, DTI (copied P Dymond, Oil & Gas UK) for registration: “On ……(date)…………..(responsible person), on behalf of ……………(company) commits to the principles of the industry’s Code of Practice on Access to Upstream Oil and Gas Infrastructure on the UK Continental Shelf and agrees to comply with the provisions of this Code, dated August 2004……………(signed)’” To provide help with the implementation of the Code and, in particular, the setting up of data requirements before the end of the year, a workshop was run in Aberdeen on 2 September 2004. Code of Practice for Access to Upstream Infrastructure, roll-out and implementation workshop (PDF Downloadable Document)   Presentations by: Paul Dymond, Operations Director, Oil & Gas UK Malcolm Flemming, CEO, CDA Limited Paul Lawson, Infrastructure Marketing Team Leader, BP   Summary of the output from workshop discussions (PDF Downloadable Document -10KB) The infrastructure Code of Practice was officially launched by the Energy Minister Mike O'Brien, MP a the PILOT meeting on 15th September 2004.  At this time over 50 companies had signed up, including all Oil & Gas UK members. If you have any comments or questions on this Code, please address them to P Dymond, Oil & Gas UK or P Kershaw, DTI, noted below: P Dymond Oil & Gas UK Operations Director Oil & Gas UK Mr Paul Dymond, Operations Director 9 Albyn Terrace Aberdeen AB10 1YP Email:pdymond@oilandgasuk.co.uk Tel: 01224 626652   DTI Mr Peter Kershaw, Head of Upstream Infrastructure (LCU) 1 Victoria Street London SW1H 0ET Email: Peter.kershaw@dti.gsi.gov.uk Tel: 020 7215 5000