Decommissioning Agreement Definition

For these reasons, models of decommissioning safety agreements have been issued and promoted by oil and gas industry associations. The decommissioning process consists of several phases. In the oil and gas industry, and particularly in the offshore industry, the wells are first secured and the structures and pipes that connect the platform to the processing centres are removed. These operations must be carried out with the utmost care and require both specialized personnel and sophisticated techniques to avoid environmental impacts. The removal phase is followed by the identification of suitable sites for the storage of unusable materials and the final treatment of potentially polluting products such as metal and plastic wrecks, flammable oils, etc. Until a few years ago, decommissioning was relatively rare in the UK.” The potential growth of the dismantling industry, as we know it today, is that the British continental shelf is becoming a mature hydrocarbon zone and oil and gas deposits are increasingly nearing the end of their exploitation. As a result, oil and gas operators are making considerable efforts to create new business opportunities. The position of the British government is to impose joint and several responsibility on oil and gas companies for the dismantling and to ensure that these companies have the financial means to fulfil their obligations, which is undoubtedly a major challenge for small oil and gas companies, which are having difficulty obtaining financing and therefore , to compete with the largest operators. The above debate has taken on an international dimension, as the dismantling mainly concerns offshore installations located on the continental shelf. Such a lack of clarity undermines the predictability that should be guaranteed in order to attract investment and thus take full advantage of the current trend in the dismantling industry. In addition to the perceived risks associated with decommissioning operations, there are typical legal issues such as obligations related to the joint use of information, cross-border transport of the dismantling and disposal structure, ownership and ownership of assets removed from the structure after dismantling, ongoing commitments to manage waste flows until their final disposal, and responsibility for the removal of the land Structure. Regardless of the cost of studying and cleaning the structures to be removed beforehand, there are still residual risks to consider.

While these risks are largely identifiable and, to some extent, evaluable, the question remains who should bear the most responsibility. If it is the contractor, then he must assess the risk that will increase the costs to the customer. If it is the client, then he may fear recalcitrant claims from the contracting person. The state of the workspace plays an important role in the installation, with an emphasis on weather conditions. For example, decommissioning in the northern part of the United Kingdom is strongly affected by the isolation and harshness of the environment in which it takes place. This is why moving activities are usually organized in the summer. In addition, the distance is sometimes more complicated than the installation itself, the latter having been the result of a permanent process of overlay over the years. Statistics show that by mid-2015, 72 decongestant measures had already been signed and more than $3.5 billion had been used. With many oil and gas facilities nearing the end of their operating life, the global dismantling market is changing dramatically, with the North Sea currently one of the busiest areas.