Energy Act 2016

Decommissioning

72 Abandonment of offshore installations

Schedule 2 makes provision about the abandonment of offshore installations.

73 Duty to act in accordance with strategy: decommissioning and alternatives

(1) Part 1A of the Petroleum Act 1998 (maximising economic recovery of UK petroleum) is amended as follows.

(2) In section 9A (the principal objective and the strategy), in subsection (1)(b), after sub-paragraph (iv) insert—

“(v) owners of relevant offshore installations.”

(3) In section 9C (carrying out of certain petroleum industry activities)—

(a) omit subsection (3), and

(b) after subsection (4) insert—

“(5) A person who is the owner of—

(a) a relevant offshore installation, or

(b) upstream petroleum infrastructure,

must act in accordance with the current strategy or strategies when planning and carrying out the activities mentioned in subsection (6).

(6) Those activities are—

(a) the person’s activities as the owner of the installation or infrastructure (including the development, construction, deployment and use of the infrastructure or installation);

(b) the abandonment or decommissioning of the installation or infrastructure.

(7) For the purposes of subsection (5), planning the activities mentioned in subsection (6)(b) includes the preliminary stage of—

(a) deciding whether or when to proceed with the proposed abandonment or decommissioning, and

(b) considering alternative measures to abandonment or decommissioning such as re-use or preservation.”

(4) After section 9H insert—

“9HA Relevant offshore installations” and their owners

(1) For the purposes of this Part an offshore installation is a relevant offshore installation if and in so far as it is used in relation to petroleum within subsection (2) (including such petroleum after it has been got).

(2) Petroleum is within this subsection if it is petroleum which for the time being exists in its natural condition in strata beneath—

(a) the territorial sea adjacent to Great Britain, or

(b) the sea in any area designated under section 1(7) of the Continental Shelf Act 1964.

(3) In this Part “owner”, in relation to a relevant offshore installation, means—

(a) a person in whom the installation is vested, and

(b) a lessee and any person occupying or controlling the installation.”

(5) In section 9I (other definitions), at the appropriate place insert—

• ““offshore installation” has the same meaning as in Part 4 (see section 44);”;

• ““owner”, in relation to a relevant offshore installation, has the meaning given in section 9HA;”;

• ““relevant offshore installation” has the meaning given in section 9HA;”;

• ““submarine pipeline” has the meaning given in section 45;”.