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Full Description
Decommissioning is the final stage of any oil or gas project and poses significant technical, economic, social and environmental risks. It is a long, costly, and complex process which if not effectively planned, managed, and executed can have disastrous consequences.
With over 95 producing countries, relatively limited experience to date, increasing risks of stranded assets and weak regulatory frameworks, decommissioning is set to become a critical issue - for the industry, governments and citizens.
This toolkit provides guidance to governments on the key issues associated with oil and gas decommissioning and recommendations for effective management.
Contents
1. Introduction
2. What is Decommissioning?
2.1 Factors that influence the timing of decommissioning
2.2 Decommissioning phases
2.3 Offshore decommissioning options
3. Key Issues and Implications for Governments
3.1 Limited country and company experience in decommissioning
3.2 Environmental and safety risks
3.3 Scale and uncertainty of decommissioning costs
3.4 Financial assurance
3.5 Socio-economic impacts
3.6 Public acceptance of decommissioning options
3.7 Weak regulatory and liability frameworks
3.8 Energy transition and bankruptcy risks
4. Elements of a Robust Regulatory Regime
4.1 Principles and policy framework
4.2 International and regional obligations and commitments
4.3 Clear and coherent legal framework
4.4 Well-resourced institutions with access to technical expertise
5. Recommendations for Governments
6. Appendices
Appendix A Types of Financial Assurance Mechanisms
Appendix B Decommissioning in International Legal Frameworks
Appendix C Checklist for Decommissioning in Legal Framework
Appendix D Model Provisions for Decommissioning
