22-08-00 DTI published new guidance notes for the decommissioning of offshore oil and gas installations. The UK is the first country in Europe to implement key decisions of the OSPAR international environmental convention which effectively ban almost all sea disposal of offshore oil and gas installations.
Energy Minister, Helen Liddell said: "After 25 years of UK offshore oil production, hydrocarbons continue to flow from the UK Continental Shelf at record levels. By the innovative use of new technology and flexible commercial arrangements many fields are in still in production which were forecast to have closed down long ago. But there will come a stage when all our offshore oil and gas fields will reach the end of their economic life. In UK waters this must be managed responsibly. The decommissioning of offshore installations is inevitable and it must be done in accordance with domestic legislation and all our international commitments. This guide is a significant step in managing this process. Offshore oil and gas operators are required to submit Decommissioning Programmes for approval. The presumption is that the vast majority of installations will be returned to shore for dismantling or for re-use opportunities elsewhere, creating important employment opportunities for the UK oil and gas industry. The Government is keen to encourage re-use. I welcome the recent Inland Revenue announcement extending tax relief to the costs of making oil installations and pipelines available for reuse."

Guidance Notes for Industry on the decommissioning of offshore installations and pipelines are the first such set of guidance to be issued by a Contracting Party to the OSPAR Convention (Commission for the Protection of the Marine Environment of the North East Atlantic) following the first Ministerial Meeting of the Convention in July 1998. This meeting unanimously agreed a binding decision effectively banning the sea disposal of offshore oil and gas installations except in a number of limited circumstances.
The Guidance Notes are issued by the DTI, but follow significant input from all of the governmental bodies who have responsibilities in this activity. The offshore oil and gas industry, both Operators and Contractors, environmental NGO's and the community at large have had the opportunity to comment.
Mrs Liddell added: "There is general agreement that these Guidance Notes offer a clear and comprehensive guide to the decommissioning process and the part that Government has to play in it. I am sure that they will be of great benefit in this growing area of activity."

Notes:
1. 'The Guidance Notes for Industry covering the decommissioning of offshore installations and pipelines under the Petroleum Act 1998' (Guidance Notes) are available on the decommissioning section of the DTI Oil and Gas Website:
-http://www.og.dti.gov.uk/decom/dcom_hom.htm
Alternatively, hard copies are available from the DTI Oil and Gas Office, 4th Floor, Atholl House, Aberdeen, AB11 6AR, Tel +44 1224 254023 2.
2.At the first Ministerial Meeting of the OSPAR Convention at Sintra, Portugal in July 1998 a binding Decision (98/3) was agreed. This Decision prohibits the dumping and leaving wholly or partly in place of offshore installations; the topsides of all installations must be returned to shore.
It is recognised, however, that there may be difficulties in removing the 'footings' of large steel jackets weighing more than 10,000 tons and in removing concrete installations. As a result derogations may be granted if the internationally agreed assessment and consultation process shows that leaving such an installation wholly or partly in place is justifiable.
3. The Guidance Notes were issued for wide ranging consultation to industry, other Governmental Bodies and any other interested parties in draft format during 1999. This exercise attracted a number of comments and where applicable these have been incorporated in the final document.
4. Inland Revenue Press Release 135/2000 was issued on 7 August 2000. This detailed changes in the capital allowances regime applicable to the costs of making offshore oil and gas installations and pipelines available for re-use. The waste hierarchy, which is embraced in the OSPAR decision, recognises that re-use of decommissioned installation is the favoured option where this is technically and economically feasible. These tax changes will make re-use more attractive.