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Decommissioning Security Agreements in the UK - what you need to know

United Kingdom
28/10/2024
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The decommissioning of offshore oil and gas installations is a multifaceted and costly endeavour, presenting numerous legal, technical, environmental, and financial challenges. Governed by the Petroleum Act 1998 and associated regulations, the UK decommissioning regime imposes extensive liabilities on current and former owners of offshore infrastructure, as well as their affiliates. To navigate these complexities and ensure financial security for future decommissioning costs, industry practice has evolved to include Decommissioning Security Agreements (DSAs). Our latest publication delves into the intricacies of DSAs, particularly focusing on the widely adopted templates provided by Offshore Energies UK (OEUK). The first section is an overview of decommissioning requirements in the UK. The following sections each look in detail at a different aspect of the OEUK DSA, from preparation and approval of the decommissioning plan, calculation and payment of the provision amount, through to the default provisions and the consequences of default.

Read the full publication here.

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