The debate over offshore decommissioning is almost as old as the first ever offshore platform—if you’re going to install it, you will need a plan to remove it once its work is done. Decommissioning liabilities have historically been the responsibility of the facility’s operator. However, sometimes iron outlives its owner. A bankruptcy or merger (or multiple) can and have muddied the waters of just who is responsible for removing a structure once it is beyond its useful life.
If there is no traceable line of ownership once the operator is gone, the responsibility can fall to the host government.
×
Continue Reading with SPE Membership
SPE Members: Please sign in at the top of the page for access to this member-exclusive content. If you are not a member and you find JPT content valuable, we encourage you to become a part of the SPE member community to gain full access.