Cessation of production

In late field life, the field operator and licensees are encouraged to confirm with the Oil and Gas Authority (OGA) whether the OGA will have any objection to the field ceasing production, permanently, at a specified time. Consequently, in order to obtain such confirmation prior to ceasing production permanently from a field or part of a field, licensees will have to satisfy the OGA that all economic development opportunities have been pursued, both for the field and for any associated current or future developments including alternative use such as CO2 storage, and that any infrastructure access considerations have been addressed.

This guidance, below, is intended to assist field operators and licensees involved in the planning for Cessation of Production ( CoP) from a field, a group of fields, an asset within a field (e.g. a platform) or a field acting as a hub. The guidance covers the following:

  • An overview of the OGA’s requirements and considerations relevant to CoP
  • The process to be followed by licensees in late field life leading to CoP
  • The content and submission of a CoP document by the field operator
  • It explains how the OGA will respond, generally by objecting, or not objecting, to the proposed CoP.

To assist the OGA in assessing the economics of CoP, the Field Operator should provide costs and profiles in the OGA’s Standard Economics Template (SET). Annual technical (untruncated) profiles should be provided for both production and costs for at least 2 years beyond the Field Operator’s proposed CoP date to enable the OGA to carry out sensitivity analyses.

This replaces previous guidance

Cessation of Production guidance