Norwegian Continental Shelf – Sale of E&P companies – Decommissioning Liability for Share Sales.

A regime of alternative liability for a seller of an offshore oil & gas production asset for costs associated with future decommissioning was introduced on the Norwegian Continental Shelf in 2009 with certain revisions having been introduced subsequently. In Denmark, a regime by and large modelled on the Norwegian approach was enacted in 2015, cf. § 29 a of the Danish Subsoil Act. Recently, as a follow-up on a letter from the Norwegian Ministry of Petroleum and Energy (MPE) has introduced new conditions.