Oil & Gas Decommissioning, Decommissioning in the United Kingdom Continental Shelf: Decommissioning Security Disputes

摘要

This is the first year in which the full impact of the oil price decrease will have to be factored in to the annual decommissioning security process. This article focuses on the increasing concern across the offshore oil and gas industry as to whether the decrease in the oil price will result in insufficient security to cover escalating decommissioning liabilities. As a result of current market conditions, there has been an increase in requests for data, closer scrutiny of operator projections, and a heightened risk of disputes about 'net value' and 'net costs, which are normally resolved through expert determination.