The following provisions apply where a person has defaulted on their share of relevant decommissioning costs.
Defaulter's costs met by co-participator
Where a participator has defaulted in respect of his share of the costs of abandoning an oil field and the expenditure is not met out of a payment under an abandonment guarantee or security1, the Petroleum Act 1998 includes provisions ensuring field participators are jointly and severally liable for field abandonment costs. Thus if a participator defaults on his share of the costs of abandoning an oil field, then the costs are required to be borne by the other participators. The legislation provides a measure of relief for both PRT and corporation/income
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