Wednesday 2 September 2009

New industry handbook drives efficiency in business transactions

Oil & Gas UK has today launched a new online handbook which will help companies improve their efficiency in the negotiation and conclusion of buying and selling of licences, and associated producing assets, on the UK Continental Shelf (UKCS). The 'Acquisition and Disposal (A&D) Handbook' identifies common UK industry practices and provides useful links to other sources of information which are aimed at helping the understanding of legal processes and hence timely deal making.

Paul Dymond, Oil & Gas UK's operations and supply chain director said: "In early 2008, PILOT introduced a Changing Gear initiative looking to drive efficiency in business transactions within the UK offshore oil and gas industry. One of the concerns was the timeliness of completing UKCS acquisition and disposal deals.  A review showed a wide range of times but, overall, no especially extended time for completing deals on the UKCS compared with anywhere else.  However, it was noted that certain customs and practices have developed on the UKCS as a result of legislative requirements which could usefully be captured in one place. One particular area which required explanation was the methodology and requirements for asset transfers that include a change of operator, which the handbook addresses."

Simon Toole, director of licensing, exploration & development at the Department of Energy and Climate Change (DECC) said: "The online A & D Handbook has been developed in order to provide assistance in the processes of asset transfer to maximise the efficiency of deals made within the UKCS. As well as providing guidance on best practice and specific legislative requirements, it also recommends that business transactions take place cognisant of the industry codes of practice."

The full handbook can be accessed at: http://oilandgasuk.co.uk/knowledgecentre/AcquisitionandDisposal.cfm

For more information, please call 020 7802 2400.