Industry Standard Decommissioning Security Agreement

The ASDs are in compliance with and are linked to the industry`s common collective agreement. They determine the commitments of the parties and how they should be protected from late payments. Designed for all development parties on the ground, including the Secretary of State, they can also be used for bilateral agreements. You have a link to the Decommissioning Cost Estimation Guideline available on this website. Both versions reflect the INTRODUCTION by the UK government of decommissioning deeds (“DRDs”) in September 2013. Mike Tholen, Director of Upstream Policy at Oil and Gas UK, said: “The industry is taking up the challenge that the OGA has met and the Wood Review, which is to remove barriers to activity in the mature areas of the UKCS. It is clear that the industry is increasingly cooperative in simplifying complexity and reducing the time it takes to conduct trade and legal negotiations. Initiatives like this are essential to address the competitiveness of the basin and open up new developments. To date, 30 companies have registered their commitment to the updated trade code, which has been rewritten to reflect commitments under the MER UK strategy and best practices for industry-wide negotiations. The code, first introduced in 2002 by Oil and Gas UK, aims to help companies adopt a cooperative approach through good practice and management commitment to conclude trade agreements in a timely and efficient manner. Simon Churchfield, OGA`s Commercial Director, said: “We are very impressed with how the industry has met the challenge and put in place a process to implement change. Oil – Gas UK Decommissioning Security Agreement Guidance Notes (March 2009), p.10.Expert Determination Under DSAsUnder the Oil – Gas UK`s Standard-form DSA, cost estimates based on the above are an important part of an operator`s dismantling plan and budgets (the proposed plan).

Oil and gas companies are expected to return the seabed to its original state (subject to certain exceptions), permanently eliminating facilities and/or infrastructure from the seabed and securing wells.