ABERDEEN, UK --Oil & Gas UK is introducing the Decommissioning Cost Provision Deed (DCPD) in Aberdeen this week. The DCPD is a new industry standard agreement for use by joint venture partners in UK offshore oil and gas fields and facilities.
The aim is to ensure that field owners put appropriate provisions in place to cover each participant's share of future decommissioning costs. The deed can also be used to provide security arrangements when an offshore asset is being bought or sold.
According to Oil & Gas UK's operations director Paul Dymond, the DCPD is the culmination of three years of discussions between a wide range of industry representatives. "Its use should ensure that robust agreements are reached more quickly and with more focus on the commercial, rather than legal, aspects of covering future decommissioning costs," Dymond says.