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Contact

Contact with chambers should be made through the Practice Management Team. They are happy to discuss client requirements and provide further information on such matters as the expertise and experience of individual members, fees, working practices and languages spoken. We have members able to work in French, German, Italian, Spanish, Dutch, Swedish, Greek and Chinese (Mandarin).

Outside working hours, a member of our team is always available to be contacted on matters of an urgent nature. Contact should be made using the Chambers main number or email.

To contact our Singapore office, please contact our BD Director, Asia, Rachel Foxton. Out of office hours calls will automatically be diverted to our clerking team in London.

London

Twenty Essex Street
London
WC2R 3AL

enquiries@twentyessex.com
t: +44 20 7842 1200
DX 0009 Lond/Chan Lane

Singapore

28 Maxwell Road
#02-03
Maxwell Chambers Suites
Singapore 069120

singapore@twentyessex.com
t: +65 62257230

Contact

Contact with chambers should be made through the Practice Management Team. They are happy to discuss client requirements and provide further information on such matters as the expertise and experience of individual members, fees, working practices and languages spoken. We have members able to work in French, German, Italian, Spanish, Dutch, Swedish, Greek and Chinese (Mandarin).

Outside working hours, a member of our team is always available to be contacted on matters of an urgent nature. Contact should be made using the Chambers main number or email.

To contact our Singapore office, please contact our BD Director, Asia, Rachel Foxton. Out of office hours calls will automatically be diverted to our clerking team in London.

London

Twenty Essex Street
London
WC2R 3AL

enquiries@twentyessex.com
t: +44 20 7842 1200
DX 0009 Lond/Chan Lane

Singapore

28 Maxwell Road
#02-03
Maxwell Chambers Suites
Singapore 069120

singapore@twentyessex.com
t: +65 62257230

23/05/2016

End of shelf life: The regulatory framework and legal issues involved when decommissioning oil and gas platforms

This is an archived article, and some links may not work. Contact us if you have any questions.

 

The oil and gas industry worldwide is facing the daunting prospect of decommissioning its infrastructure. This is a global issue, affecting installations in Indonesia, the Gulf of Mexico and Europe. In respect of Europe this is especially so in the North Sea, where depressed prices, high maintenance costs and depleted natural reserves on the continental shelf signal the end of life for many ageing platforms. The United Kingdom, owing to the position of current sites on its side of the continental shelf, is set to dominate the necessary expenditure in this area. Present estimates suggest that costs could exceed US $43 to 50 billion, depending on the method of removal.   The source of these costs include the approximately 146 oil platforms predicted to be removed between 2019 and 2026, accounting for just over half of the total platforms in UK waters.

Decommissioning each item of oil and gas infrastructure is a significant commercial and industrial project that requires substantial planning and expenditure. Industry players will need to be aware of the complex regulatory and legal path to decommissioning in the United Kingdom. However, beyond establishing and approving the plan itself, other legal questions will be relevant, from funding the decommissioning costs and liability under joint operating agreements to asset transfers, litigation risk with contractors, and the need to comply with international, EU, and domestic regulations on the environment.

In this bulletin, Members flag the principal legal issues that players in the oil and gas industry should consider when planning to decommission their infrastructure, when contracting with companies to implement the plan, and when limiting their exposure to relevant costs.

 

Read the full article here.

 

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