Decommissiong Offshore Energy Installations

A Consultation on changes to the offshore decommissioning regimes for oil and gas installations in the Petroleum Act 1998 and for renewable energy installations in the Energy Act 2004.

This consultation is about proposed changes to the statutory decommissioning regimes for offshore oil and gas installations and pipelines and offshore renewable energy installations and related electric lines.

The main areas covered by the consultation are:

  • the safeguarding of decommissioning funds in the event of insolvency
  • widening the category of persons on whom decommissioning obligations can be placed (bringing offshore renewables in line with current oil and gas provisions)
  • providing for earlier issue of notices and earlier provision of decommissioning security (bringing oil and gas in line with current renewable provisions)
  • information, ensuring the Secretary of State has access to appropriate information to enable him to carry out his functions under the offshore oil and gas and renewable energy decommissioning schemes. In addition it covers the potential for cross-industry cooperation and collaboration at the decommissioning stage.

Energy is a reserved matter except in relation to Northern Ireland.  It is proposed that the amendments to the offshore oil and gas decommissioning regime will apply, like the original provisions of the Petroleum Act 1998 to all of the UK territorial waters and the UK Continental Shelf (UKCS). The offshore renewable energy decommissioning scheme applies to territorial waters in or adjacent to England, Scotland and Wales and to waters in the UK Renewable Energy Zone (including that part adjacent to Northern Ireland territorial waters). The consultation therefore applies to the whole of the UK but decisions relating to issues that affect Northern Ireland’s devolved responsibilities will be subject to consultation with the Northern Ireland Assembly.