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SAFETY4SEA

First global offshore decommissioning contract now available

by The Editorial Team
September 23, 2019
in Offshore
rig vessel collision

Above image is used for ilustration purposes only / Credit: Shutterstock

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BIMCO’s new DISMANTLECON contract, the first global standard contract designed for the dismantling and removal of offshore structures in the energy sector, is now available. The contract aims to provide a balanced set of terms and conditions to both parties in the process.

After approval by BIMCO’s Documentary Committee in May 2019, the new contract aspires to provide a clearly worded agreement, containing a fair allocation of risks and responsibilities when dismantling offshore structures.

DISMANTLECON is a marine services contract designed to appeal equally to the party requiring removal of the structure and the marine contractors whose services they use. It fairly represents the interests of both parties by providing a balanced set of terms and conditions. Further, it is an industry first contract in the sense that it is designed to be used globally

mentioned Kees de Looff, Contracts Manager of Van Oord Marine Contractors, who chaired the project.

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The use of the contract is not limited to one particular type of facility or operation. It can be used for removal of any offshore field architecture in the oil and gas sector. This includes pipelines, mattresses, manifolds, jackets, topsides, platforms and monopile structures, and for structures used in the renewables sector.

In addition, the contract is not intended to cover disposal of the facility or Plug & Abandonment (P&A) work.

DISMANTLECON is a simple template contract that can be amended and adapted to meet the needs of contract partners. It is designed to be scalable and can therefore be used for small to medium sized projects as well as for larger and more complex ones

added Grant Hunter, BIMCO’s Head of Contracts and Clauses.

The contract has been written by key stakeholders, marine service providers, marine contractors, P&I and legal experts. IMCA and the International Salvage Union (ISU) were also represented, and guidance on insurance has been provided by an insurance broking and risk management company.

Finally, input has also been provided by a representative of an energy company co-opted on to the subcommittee.

First global offshore decommissioning contract now availableFirst global offshore decommissioning contract now available
First global offshore decommissioning contract now availableFirst global offshore decommissioning contract now available
Tags: BIMCOoil and gas industry
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