Chapter OT28601
| Published date | 13 March 2016 |
| Record Number | OT28601 |
| Court | HM Revenue & Customs |
| Issuer | HM Revenue & Customs |
As part of the terms of becoming a participator in a North Sea licence, companies have a responsibility for decommissioning any installations and infrastructure remaining on an oil field once oil and gas production has ceased.
Decommissioning Security Agreements (DSA), are standard oil and gas industry agreements. Their use is not compulsory, but they can be used by joint venture partners as a means of agreeing decommissioning liability and ownership, and ensure that appropriate provision is in place to cover each company’s share of future decommissioning costs.
The model or template DSA will typically incorporate two trusts. One to deal with any monies placed in trust and a second which will deal with alternative provision for...
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