Strategic Framework for Managing Contractor Withdrawal and Asset Preservation in the Oil and Gas Sector: A Guide for the Ministry of Oil and Minerals
Strategic Framework for Managing Contractor Withdrawal and Asset Preservation in the Oil and Gas Sector: A Guide for the Ministry of Oil and Minerals I. Executive Summary Managing contractor withdrawal from oil and gas fields is a complex and multifaceted process, involving significant legal, technical, financial, environmental, and social challenges. If not effectively managed, these withdrawals can lead to severe risks such as orphaned wells, environmental pollution, and unexpected financial burdens on the government. However, proactive and well-planned management offers strategic opportunities to preserve asset value, ensure environmental safety, and enhance national capacity in the energy sector. This report provides the Ministry of Oil and Minerals with a comprehensive framework to address these challenges. Key recommendations include strengthening national legal and regulatory frameworks to ensure clarity of contractual obligations, implementing robust financial assurance m...