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U.S. Seeks More Financial Guarantees for Offshore Oil Wells

Aug. 18, 2021, 6:00 PM

The Biden administration is tightening requirements to ensure that oil companies pay for decommissioning offshore wells, with an approach that could force more companies to prove that they can cover those cleanup costs.

  • The Interior Department’s Bureau of Ocean Energy Management says it will require so-called supplemental financial assurance for some high-risk properties even where there are multiple lessees, working interest owners or prior interest holders
  • Agency says it is focusing efforts on properties with more than one owner where the companies are not financially strong and there are no strong co-owners or predecessors
  • New approach could increase financial risk ...