London, Monday, 20 February 2017: London-based Company Quatre Ltd has produced a new solution designed to fund the decommissioning of oil and gas fields and rehabilitation of other extractive industrial locations including mines. Quatre Ltd was originally set up to meet the needs of the oil and gas industry operating in the Gulf of Mexico and the North Sea.
“The flexibility of the Quatre model means that it can just as easily be applied to decommissioning of oil and gas E&P operations and other extractive industries including open cast mining”, says Paul Jardine, CEO Quatre Ltd.
North Sea oil and gas field operators, together with governments are facing the huge challenge of funding the decommissioning of offshore oil and gas fields. Between now and the mid-2050s, around 470 platforms, 5,000 wells, 10,000km of pipelines and 40,000 concrete blocks will have to be removed from the North Sea.[i]
A leading industry body, Oil and Gas UK, has estimated that it could cost nearly £17bn over the next decade to decommission just 80 platforms, plus their associated support infrastructure.[ii] The estimated cost to complete the entire job by the end of the 2050s could reach some £60bn, a figure that has been revised upwards several times. Such a bill is a problem not just for the industry, but also the British taxpayer, who under existing UK rules, will have to meet half the total decommissioning bill through tax rebates.[iii]
“Quatre’s range of solutions protects the public purse and enables clients to put aside funds for future decommissioning and rehabilitation”, says Paul Jardine. It is crafted to meet the specific challenges facing both industry and government in funding the cost of decommissioning and rehabilitation, while also providing useful environmental and economic benefits.
Quatre Ltd provides its clients with the following solutions:
- The setting up of a Special Purpose Trust, designed to protect the public purse from decommissioning liabilities and ensure that economic recovery is maximized.
- Provide post-decommissioning liability insurance to address the risk of failure of any decommissioning work.
Quatre Ltd provides services and products that support the financial risk management associated with the decommissioning of oil, gas and other extractive industry assets. Quatre’s services and products allow industry to:
- Manage decommissioning and post-decommissioning liability
- Protect the public purse
Paul Jardine, an oil and gas industry veteran, founded Quatre Ltd in 2013. Quatre’s integrated team of professionals, covering insurance brokerage, investment management, legal, taxation, trust management and E&P operations, helps industry clients address the financial requirements associated with decommissioning liabilities. Quatre is an Appointed Representative of Property Insurance Initiatives, who are authorized and regulated by the UK Financial Conduct Authority, in respect of the negotiation and placement of post-decommissioning liability insurance policies.
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