BIMCO to publish offshore decommissioning contract

BIMCO’s Documentary Committee has approved DISMANTLECON, an international standard contract for offshore decommissioning projects which would “provide a balanced set of terms and conditions to both parties in the process”. The contract was approved at the Committee’s meeting in Athens on May 14th and will be released at the end of June.

Kees de Looff, Contracts Manager of Van Oord Marine Contractors, who chaired the project, described DISMANTLECON as “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”.

The use of the contract is not limited to one particular type of facility or operation but 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. The contract is not intended to cover disposal of the facility or Plug & Abandonment (P&A) work.

Grant Hunter, BIMCO Head of Contracts and Clauses, said that DISMANTLECON was “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”.

The contract has been written by a group of key stakeholders including marine service providers, marine contractors, P&I and legal experts from HFW, led by global shipping head Paul Dean and HFW partner Tom Walters. The International Marine Contractors Association (IMCA) and the International Salvage Union (ISU) were also represented, and guidance on insurance was provided by “a leading insurance broking and risk management company”.

BIMCO said that “valuable input” had been provided by a representative of an oil major co-opted on to the subcommittee.