Oil & Gas UK

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Other sources of information


Industry forums
:

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.

In 2006, PILOT established a Decommissioning Steering Group to specifically target decommissioning issues. The group has been successful in several areas, including consultation on the Energy Bill in 2008, the issue of decommissioning securities and the new DSA, the new Well Decommissioning Guidelines, and identifying key technical / supply chain delivery issues.

Guidelines and documents:

Decommissioning Security Agreements (DSA)


DSA - This is the industry standard agreement (executed as a deed) providing for decommissioning liabilities of oil and gas field developments. It is consistent with and links with the standard industry JOA. It identifies the liabilities of the parties and how these should be secured against default. Developed for all parties to a field development, including the Secretary of State, it can also be used for bilateral arrangements. This links with the Decommissioning Cost Estimation Guidelines.

DSA Guidance Notes - This comprehensive guide provides the background to the Decommissioning Cost Provision Deed (DCPD) and advises on different options available. The expert views of the broad range of companies involved in generating the DCPD are distilled into this document. As well as a diverse group of operating companies, this includes the Law Debenture Trust and HMRC.

DSA Joint Opinion from Senior Legal Counsel on Initial Draft 2007 - The initial advice from senior legal counsel Gabriel Moss, QC and Mark Arnold on how to protect decommissioning trust funds from any more general insolvency creditor.

DSA Senior Legal Counsel Opinion Following Energy Bill 2008 (two papers) - This advice from Mark Arnold involves both the assessment of how the protection from the Insolvency Act, arising from the Energy Act 2008, works and the recommendation to amend the DCPD in light of this.

 


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Last updated 14th May 2009

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