Oil and Natural Gas: Marine Protected Areas
The question
To ask the Secretary of State for Energy Security and Net Zero, what mechanisms are in place to help ensure oil and gas companies remain liable for the decommissioning costs of wells and pipelines within marine protected areas, including where operators cease trading or sell on licences.
Answered by Michael Shanks
Section 29 of the Petroleum Act 1998 ensures that companies connected to offshore installations and pipelines remain responsible for decommissioning. Liability for decommissioning continues after a licence or asset sale and applies to all companies being served a section 29 notice.
Decommissioning obligations are joint and several, allowing SoS to recover costs from remaining liable parties even where another party defaults. OPRED monitors financial resilience of companies connected to North Sea oil and gas installations and ensures that Section 29 notices are served and maintained.
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