<p><strong>What is the </strong><strong>extent of decommissioning liability under the
Petroleum Act 1998 with regard to wells drilled after the relevant oil field
license had been sold to a third party? </strong></p><p><strong></strong>On 17 May 2021, the Commercial Court handed down judgement in the case of Apache UK Investment Ltd v Esso Exploration and Production UK Ltd <a data-sf-ec-immutable="" href="https://www.bailii.org/ew/cases/EWHC/Comm/2021/1283.html">[2021] EWHC 1283 (Comm)</a>. The case concerned a dispute as to the amount of security to be provided under bilateral decommissioning security agreements (BDSAs) entered into as part of a purchase by Apache from Esso of a company that held licenses in six North Sea oilfields. At the time of the agreements, Apache Corporation, the ultimate parent company of Apache, provided a guarantee in support of Apache’s obligation to indemnify Esso fo</p>
Source: LexisNexis Purpose Built
Case Analysis—Apache v Esso and decommissioning liability under the Petroleum Act 1998
