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The Press and Journal (Aberdeen and Aberdeenshire) - - ENERGY VOICE -

Is it bul­let­proof? No – be­cause, in my opin­ion, the need has not yet been reached,” he said. “When as­sets need to be de­com­mis­sioned there would be more fo­cus on anal­y­sis and leg­is­la­tion and short­falls could be ad­dressed through reg­u­la­tions.” tested. Some on­look­ers have warned that So­nan­gol will not give up its pow­ers with­out a fight and ex­pan­sion into a new area may prove to be a point of con­flict.

Ma­jor projects in West Africa tend to be dom­i­nated by for­eign ma­jors, which are likely to sell as­sets down once a cer­tain level of ma­tu­rity is reached, as can be seen by Shell’s on­shore sales in Nige­ria.

Blythe said: “This may cre­ate chal­lenges: the IOCs have ex­pe­ri­ence and re­sources about how to carry out these projects, which the Nige­rian com­pa­nies cur­rently lack.”

In the North Sea sales are be­com­ing in­creas­ingly so­phis­ti­cated in terms of how decommissi­oning li­a­bil­i­ties are shared or trans­ferred. This has not yet hap­pened in West Africa and has been “largely over­looked” when it comes to M&A ac­tiv­ity, “with the stan­dard ap­proach be­ing that the in­com­ing buyer as­sumes all li­a­bil­i­ties. But this may be­gin to change,” Blythe said.

There are op­por­tu­ni­ties for knowl­edge and ex­per­tise to be trans­ferred from ma­ture ar­eas, such as the North Sea or Gulf of Mex­ico, to West Africa.

One thing for ser­vice com­pa­nies to bear in mind for such work will be lo­cal con­tent re­quire­ments, Okusami said. “Decommissi­oning ac­tiv­i­ties are ser­vices that are pro­vided and when IOCs give out con­tracts those are cov­ered by lo­cal con­tent needs. There will be an im­pact on how ser­vices are granted.”

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