Oil & Gas UK

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Industry forums
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Following the establishment of PILOT in 1999, a North Sea Decommissioning Forum was established, recognising the likelihood for substantive decommissioning activity with the low oil price of the day. Although, this became subsequently defunct, some of the associated forums remain. There is a Decommissioning Technology Forum, (DTF) and The Early Decommissioning, TEDs group.

The TEDS group (The Early Decommissioning Synergy group) was initially an informal meeting place for operators on the UKCS involved in decommissioning of disused facilities, and was later extended to include operators on the NCS. It was set up in response to the OSPAR 98/3 Decision and the purpose is to share experiences and discuss co-operation on non-competitive issues.

The TEDS group was initiated in a meeting in London in December 1998 and has met regularly 2 or 3 times a year in Aberdeen or Stavanger. Operators involved in decommissioning are welcome to join these informal meetings. UK and Norwegian authorities also attend to discuss information on decommissioning issues.

More recently, PILOT established a Decommissioning Work Group to specifically target decommissioning issues. The group has been successful in several areas. Currently the group’s work includes addressing the issue of decommissioning securities affecting asset trading and investment. It is also aiming to promote and stimulate decommissioning supply-chain capability.

One subgroup of the PILOT decommissioning project is Workgroup 4 (WG4). This group is looking to understand the technical capability to execute decommissioning programmes. Initially this is to get a common approach, language and methodology for how technical options translate into programme cost estimates. This will then identify the opportunities for improving capability and reducing costs through new technology and improved supply chain delivery of planning. For more information on this workgroup please click here.
 

Guidelines and documents:

Decommissioning Cost Provision Deed

The draft industry template below and the related guidance notes are to be discussed at a seminar to be held by Oil and Gas UK at the AECC on 26th September 2007. After that seminar, any comments or concerns will be taken into account and a final version will then be published on this website.

It should be noted however that the template may require further amendment over coming months to reflect ongoing discussions with HMRC regarding the tax treatment of decommissioning security and to reflect the final form of the latest industry standard joint operating agreement, which the DCPD is intended to work alongside, but which is still in the course of development.

Webcast: Watch the webcast from the launch of the Decommissioning Cost Provision Deed on the 25th September 2007 - click here
 

In June 2007 the Department for Business, Enterprise and Regulatory Reform (BERR) issued a consultation document on decommissioning offshore energy installations. This called for responses by 13th September 2007. Oil & Gas UK sent its submission on 2nd August 2007, representing the aggregate view of the organisation across its members, including those of operators, non-operating licensees, and contracting companies within the sector. This submission sets out the industry’s overall approach and answers the specific questions asked in the consultation document. This builds on prior discussions held with the Department through work groups set up under PILOT.


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