PE Live: Decommissioning throws up opportunities
Picking up the tab for end-of-life liabilities is inevitably a thorny issue in a mature basin. But decommissioning offers pros as well as cons
“The decommissioning issue has been vexing everyone in the industry for decades.” John Conlin, partner at law firm Bryan Cave Leighton Paisner, does not mince his words on the magnitude of the subject. It touches on “almost every activity, from field development through to M&A and onto the funding of decommissioning security agreements”, says Conlin. “And I think it could be a potential opportunity for the UK continental shelf [UKCS] and its supply chain. If you look at the current cost estimates for decommissioning in the basin, it is c.$50bn. “That presents a potential growth story for specialist companies focused solely on decommissioning solutions, such as Petrodec or Fairfield Decom
Also in this section
26 April 2024
While the US has been breaking records for its premium grade crude, there are doubts over whether you can have too much of a good thing
26 April 2024
Slowing demand growth and capacity expansions will squeeze refiners in coming years
25 April 2024
Some companies with assets in Israel have turned towards Egypt as tensions escalate, but others are holding firm despite rising tensions
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields