Insurance method designed to safeguard decommissioning
Quatre has devised what it claims is a new method for funding decommissioning of oil and gas fields.
LONDON – Quatre has devised what it claims is a new method for funding decommissioning of oil and gas fields.
Various estimates suggest that between now and the mid-2050s, around 470 platforms, 5,000 wells, 10,000 km (6,214 mi) of pipelines, and 40,000 concrete blocks will have to be removed from theNorth Sea.
Oil & Gas UK has estimated that it could cost nearly £17 billion ($21.1 billion) over the next decade to decommission just 80 platforms, plus associated support infrastructure, while the figure to complete the entire program could approach £60 billion ($74.6 billion).
Quatre’s solution involves setting up of a Special Purpose Trust, designed to protect the public purse from decommissioning liabilities and ensure that economic recovery is maximized. It involves providing post-decommissioning liability insurance to address the risk of failure of any decommissioning work.
The company is an Appointed Representative of Property Insurance Initiatives, authorized and regulated by the UK Financial Conduct Authority in respect of the negotiation and placement of post-decommissioning liability insurance policies.