Direction for decommissioning

is to launch the Decommissioning Cost Provision Deed (DCPD) at an interactive seminar to be held in

tomorrow.

According to a statement, the DCPD is a new industry standard agreement for use by joint venture partners in UK offshore oil and gas assets to ensure appropriate provisions are in place to cover each company’s share of future decommissioning costs.

Paul Dymond, Oil & Gas UK’s operations director, commented: ‘Even though decommissioning is over a decade away for most installations, the UK oil and gas industry has been engaged with government in designing new measures to improve the regulatory regime. The DCPD is the culmination of three years of discussions involving a wide range of people to create a robust financial security agreement for all parties involved in decommissioning.’

Used in conjunction with the Joint Operating Agreement (JOA), the DCPD will facilitate agreement between co-venturers on how future decommissioning costs will be covered in new oil or gas projects. It can also be used to provide security arrangements at the time of licensees buying or selling an interest in an asset.