UK Body Publishes Standard Offshore Contract
The offshore industry group Oil & Gas UK (OGUK) has published a standard contract for the process of decommissioning infrastructure, it said December 18. Developed by its wholly-owned subsidiary Leading Oil & Gas Industry Competitiveness (Logic), it is intended to improve the efficiency of drafting, executing and negotiating commercial agreements.
Logic CEO Graham Elgie said the model contract, "developed by Oil & Gas UK’s Legal Issues Forum provides companies and their contractors with a framework for working towards commercial agreements in a timely, co-operative and effective manner. This couldn't have been achieved without the support and expertise provided by industry, particularly the members on our Decommissioning Task Finish Group.
"Parties using this new model contract can reduce bidding costs, eliminate duplication of effort and streamline business processes enabling the UK to build on our growing reputation for effective cost leadership in decommissioning."
The general conditions of contract for offshore decommissioning covers complete decommissioning of infrastructure, from cessation of production to delivery of structures to shore. It is available from the Logic website, along with all the other standard contracts that, according to OGUK records, have been downloaded over 24,000 times in aggregate since April 2014.