The Problem
Long-Term Liabilities Need Long-Term Solutions
Oil and gas decommissioning obligations can last decades. Most financial assurance tools were never designed for that reality.
Traditional surety bonds and reserve-based approaches tie up capital, strain balance sheets, and still leave operators exposed to regulatory, transaction, and reputational risk. In many cases, these tools are structured to avoid paying out, even though the obligation itself is inevitable.
As regulatory scrutiny increases and assets change hands, underfunded plugging and abandonment liabilities create compounding risk over time.
Traditional surety bonds and reserve-based approaches tie up capital, strain balance sheets, and still leave operators exposed to regulatory, transaction, and reputational risk. In many cases, these tools are structured to avoid paying out, even though the obligation itself is inevitable.
As regulatory scrutiny increases and assets change hands, underfunded plugging and abandonment liabilities create compounding risk over time.







