OneNexus LLC
Providing Permanent Financial Assurance to the energy industry
for well plugging and abandonment obligations.
A first-of-its-kind “insurance like” solution designed to meet the energy industry’s Asset Retirement Obligations (AROs).
OneNexus Assurance™
OneNexus Assurance™ is an Insured Financial Contract that provides funding for oil and gas decommissioning expenses
Capital is available at the time of plugging, assuring that Operators
will have funding for future decommissioning expenses.
Funding is secured in a regulated insurance company with reserve capital provided by Munich Re, a AA-rated global insurance company
When Production Ends, All that Remains is a Liability
OneNexus Assurance™
New Wells & Drilling Programs
- Coverage is purchased within 3 years of the well being drilled
- Financial asset is attached to the well for life, even through divestitures
- Claims are paid at the time of decommissioning
- Option to transfer title of the well to OneNexus after it is plugged
OneNexus Assurance™
A&D /Regulatory Financial Security
- Can be used in lieu of 3rd Party Surety Bonds and Letters of Credit
- Establishes a financial asset that benefits the Client and 3rd Party Beneficiaries to protect against decommissioning liabilities
- Asset portfolio may contain wells of a broad age range
- Option to transfer title of the well to OneNexus after it is plugged
OneNexus Assurance™ Addresses ARO Risk
Predecessor-in-Title Risk
OneNexus Assurance coverage remains with the well through divestitures, eliminating “Boomerang Liability” if a future owner should default on its obligations or go bankrupt.
Environmental Risk
OneNexus takes title and ownership of the well after it is plugged, assuming any and all post-plugging liabilities.
Partner Non-Payment Risk
Pre-payment of future decommissioning costs by working interest partners protects the operator from having to collect from them in the future.
Inflation Risk
Eliminate the risk of future cost increases.
Regulatory & Political Risk
Protects clients against unforeseen scope changes in State or Federal regulatory requirements.
Headline/Reputational Risk
Protects the company and executives against adverse publicity surrounding asset decommissioning, such as unfunded AROs.
Learn more about our ARO solutions today!
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