Responsibly managing post-decommissioning commitments and activities for the long term.

As global decommissioning activity increases, clarity and certainty around post-decommissioning liability is increasingly important for both industry and governments. Post-decommissioning liability refers to how responsibilities are managed after decommissioning activity has been completed and accepted by the relevant State. It encompasses the management of any residual or contingent risks, the allocation of responsibility over time, and the fair and transparent apportionment of that responsibility.

IOGP’s guiding principles related to post-decommissioning liability and long-term stewardship are as follows:

Minimise Post-Decommissioning Risk

Responsible decommissioning requires commitment to ensure that risks which remain after decommissioning are minimised. Residual risks need to be identified, monitored and mitigated if required. These risks need to be communicated openly and transparently to relevant stakeholders. Risk assessments need to be based on credible scientific evidence, high quality environmental data, and the application of recognised technical standards. This aims to ensure long term safety, protect the environment, and enable continued safe access by others.

Proportionate Monitoring

Independent verification of completion should confirm that decommissioning has been executed as intended and that residual risks are low. Once regulatory requirements are met, any monitoring should focus on confirming stable conditions and providing timely warning of any unexpected change. Post-decommissioning monitoring should be proportionate to the risk and timebound.

Clear and Durable Agreements

Post-decommissioning liability should be clear, fair, and allocated in proportion to the benefits derived from the asset over its lifetime, including benefits to the State through taxation and revenues. When State defined decommissioning standards are met, verified, and agreed, and timebound post-decommissioning monitoring confirms a benign site, responsibility for post-decommissioning liability should transfer to the State.

Predictable Long–Term Liability

Post-decommissioning liability should be managed through predictable, reasonable, and transparent arrangements that provide confidence to all parties. Stable and predictable regulation is essential to these arrangements, enabling industry and government to plan for the long term and ensuring post-decommissioning responsibilities are met in a fair and sustainable manner.