Decommissioning is the set of activities associated with the permanent interruption of the operation of facilities, the permanent abandonment and razing of oil and gas wells
The ANP approved last September 23, a resolution that regulates procedures for presenting guarantees and instruments that ensure the decommissioning of production facilities in oil and natural gas fields. The issue has gained special importance in the current context, with the approaching end of Round Zero contracts and the execution of Petrobras' divestment projects, which transfers the rights and obligations of a significant number of contracts to other companies.
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Decommissioning of facilities was already provided for in the contracts for exploration and production of oil and natural gas
The presentation of financial guarantees for the decommissioning of facilities was already provided for in the contracts for exploration and production of oil and natural gas, signed between the ANP and the companies. The resolution brings predictability as to the moment of presentation of the guarantee and legal certainty regarding the criteria required for its acceptance by the ANP, respecting the Agency's discretion.
Decommissioning is the set of activities associated with the permanent interruption of the operation of the facilities, the permanent abandonment and razing of wells, the removal of facilities, the proper disposal of materials, residues and rejects, the environmental recovery of the area and the preservation of the conditions of local browsing security.
This activity is a contractual obligation, and is carried out at the end of the Field's productive life, when production is no longer sufficient to sustain operating costs.
Decommissioning requires contractors to incur expenses, exactly at a time when the field no longer presents a financial return
Decommissioning requires contractors to incur expenses, exactly at a time when the field no longer has a financial return. For this reason, oil and natural gas exploration and production contracts determine, in addition to the obligation to conduct the abandonment and deactivation of facilities, the obligation to provide financial guarantees to secure the necessary resources for this purpose.
The ANP began debating the issue in 2015 and, as of 2018, within the scope of Public Contribution No. 8/2018, discussions were intensified through working groups, together with interested parties, making it possible to consolidate the types of guarantees , the methodology for calculating the decommissioning cost and the progressive contribution model, with the objective of financially ensuring the decommissioning to the Federal Government.
The ANP submitted the draft for market appreciation through prior consultation in March 2020, and subsequently to public consultation and hearing, resulting in the new resolution approved yesterday.
The resolution will enter into force after its publication in the Official Gazette of the Union, in accordance with Decree 10.139/19.
Veja HERE presentations on the topic.
