Oil and Gas Authority Levy and Fees Regulations 2026: implications for UK health and safety governance and regulatory compliance

Oil and Gas Authority Levy and Fees Regulations 2026: implications for UK health and safety governance and regulatory compliance

What has changed

These Regulations introduce a levy and fees payable to the Oil and Gas Authority (the OGA). They create a funding mechanism for the regulator that may affect oil and gas operators and licensees across sectors. The change requires organisations to plan for additional ongoing costs and to reflect those costs in governance, budgeting and procurement processes. The update relates to the way the OGA raises revenue to perform its regulatory obligations, including oversight of safety, environmental and licensing activities within the UK oil and gas sector.

Who is affected

The change primarily affects operators, licensees and contractors active in oil and gas exploration, production and decommissioning who are subject to OGA oversight. While the policy is sector specific, the implications extend to procurement, project finance and contract management teams responsible for ensuring ongoing regulatory compliance and budgetary control. Organisations with offshore assets or supply chains in the UK may see changes to annual expenditure and reporting requirements.

Why it matters

The levy and fees create a new financial obligation that sits within the broader landscape of regulatory compliance and UK health and safety law. For duty holders, the key risk is that insufficient budgeting or misalignment of cost controls could undermine safe operations if funding for regulatory oversight or safety programmes is compromised. The update underscores the need for strong governance, robust cost tracking and timely submission of any required returns or notices to the OGA, in line with legal duties to comply with regulatory requirements.

What organisations should do next

Act now to ensure the levy is reflected in financial planning, risk registers and management systems. Practical steps include:

• Review and update the budget to include the OGA levy and any associated fees
• Revise procurement and supplier contracts to address ongoing regulatory costs
• Audit accounting and reporting processes to ensure timely and accurate payments
• Involve health and safety governance leads in financial planning to protect funding for safety programmes
• Align with appropriate management systems, such as ISO 45001 health and safety management, to maintain systematic control of workplace risk and regulatory compliance

Next steps for governance and risk management

Update risk assessments and control measures to reflect the financial implications of the levy, and ensure responsible persons are aware of new reporting requirements. Consider engaging with a competent person for health and safety advice when evaluating the impact on safety related budgets and programmes. Implement monitoring mechanisms to track levy cost trends and its effect on safety initiatives, and ensure training and competence development remains aligned with proactive risk management.

The update reinforces the importance of integrating financial planning with health and safety governance. By embedding the levy within ISO 45001 and risk management activities, organisations can maintain a resilient compliance posture and protect frontline safety performance.

In summary, UK health and safety law and regulatory compliance for oil and gas operations now includes ongoing OGA funding obligations. Timely planning and effective cost governance are essential to maintain robust safety programmes and a compliant operating environment.

Synergos Consultancy can support with governance design, risk assessment and competent advice as you adapt to these changes. See Competent Person support and ISO 45001 for structured approaches to compliance.