Evolution of the Global Decommissioning Regulatory Regime

Abstract

Abstract This paper discusses the evolution of the global and regional Regulatory Regime for the decommissioning of disused oil and gas production platforms and other installations. The last part of this paper puts the regulatory aspects of the issue discussed into context. Introduction In June of 1995 the Brent Spar incident brought world attention to decommissioning of offshore installations. The attention was enhanced through numerous misconceptions, which moved the public to outrage in certain countries in Continental Europe. One misconception was that a regulatory regime was not in place. To the contrary, world regulators and authorities had begun developing requirements for decommission some 37 years earlier and by the time of the Brent Spar, there were strict and competent global and regional Regulatory Regimes in place. In bringing world attention to decommission, the Brent Spar will be remembered as a symbol of industry's failure to demonstrate a real desire to communicate openly with the public and put across credible messages. It is a powerful reminder that a technically and scientifically sound solution which complies with all regulations is not in itself enough to secure public confidence and support. The industry has learned much from the incident, but still faces public, technical and regulatory challenges. If government authorities and industry do not understand the Regulatory Regime or the physical consequences of their decisions, and the public's reaction to their decisions is not considered, then the process of decommissioning will be difficult. Industry must recognize and accept that public outrage could reoccur. Since 1995 special interest groups have been attempting to change Global and Regional Regulatory Regimes by eliminating the case-by-case approach and requiring totalremoval to shore. If all factors are considered and balanced, not all structures should be totally removed and taken to shore. Yes the sea bed would be clean, but the atmosphere and land may not be. The material would be recycled, but at a cost that would not always be in balance with sustainability rationale. The author is an engineer/manager with a major oil company with global interests in oil and gas. He has been following the decommissioning issue since 1972, served as industry advisor to the US Delegation during the negotiations of the IMO Removal Guidelines and, since the summer of 1995, has served as the International Regulatory Consultant to the industry's Offshore Decommissioning Communications Project (ODCP). Global Regulations The global Regulatory Regime has evolved over the last 40 years. Its development has established a balance between the need to protect the environment, navigation, fishing and other users of the sea on the one hand, and to take into account the safety, technical feasibility and cost of decommissioning on the other. Current regulation reflects a balanced and informed recognition by states of both the concerns and the difficulties involved. The global Regulatory Regime consists of the 1958 Geneva Convention, 1982 Convention on the Law of the Sea (UNCLOS), the 1989 International Maritime Organization (IMO) Guidelines and Standards, the 1972 London Convention (LC) and the 1996 Protocol to the 1972 London Convention. A discussion of each follows.