Deconstructing the Cost of Decommissioning
Senior figures from across the oil and gas industry will gather in Aberdeen next week to discuss the findings of the latest research from Deloitte and Douglas-Westwood, which will examine the economic implications of dismantling North Sea infrastructure. The Deloitte seminar on 5 October will provide an overview of the study’s findings, which encompass the UK’s regulatory regime, planning requirements, the economic aspects of decommissioning and an analysis of the decommissioning supply chain. The seminar will also highlight the accounting and tax treatment of decommissioning costs. Speakers include Rhydian Williams, of Deloitte’s Petroleum Services Group, and Andrew Reid of Douglas-Westwood, who will provide an overview of the current decommissioning environment. They will be joined by Clare Munro, partner at Bond Pearce LLP, who will discuss the legal aspects of decommissioning and Gunther Newcombe of BP, who will provide an operators perspective gained from recent decommissioning experiences.
Presentations will be followed by a Q&A session with the panel, which will be joined by Paul Dymond of Oil & Gas UK.
Andrew Ogram, tax partner at Deloitte in Aberdeen, said: “During the next two decades the oil and gas industry will begin to decommission many of the installations that have been producing oil and gas for the past thirty to forty years. With some 10,000 km of pipelines, 15 onshore terminals and around 5,000 wells involved, this is a complex process during which a number of economic, tax, legal and environmental aspects need to be addressed. Total costs involved in decommissioning UKCS infrastructure are estimated at GBP 15-20 billion so it is vital that the industry has a thorough understanding of the issues in order to meet the challenge.”
The seminar will take place on Monday, 5 October 2009 at the Marcliffe Hotel & Spa, Aberdeen, from 15:00 hrs.
To register, contact Lee Jobson on +44 (0)1224 847305 or ljobson@deloitte.co.uk