BIMCO’s new DISMANTLECON contract, the first global standard contract designed for the dismantling and removal of offshore structures in the energy sector, is now available and aims to provide a balanced set of terms and conditions to both parties in the process.

Following approval by BIMCO’s Documentary Committee in May this year, the new contract has been developed to provide a clearly worded agreement with a fair allocation of risks and responsibilities when dismantling offshore structures.

“DISMANTLECON is a marine services contract designed to appeal equally to the party requiring removal of the structure and the marine contractors whose services they use. It fairly represents the interests of both parties by providing a balanced set of terms and conditions. Further, it is an industry first contract in the sense that it is designed to be used globally,” says Kees de Looff, Contracts Manager of Van Oord Marine Contractors, who chaired the project.

Input from the industry

The use of the contract is not limited to one particular type of facility or operation but can be used for removal of any offshore field architecture in the oil and gas sector. This includes pipelines, mattresses, manifolds, jackets, topsides, platforms and monopile structures, and for structures used in the renewables sector. The contract is not intended to cover disposal of the facility or Plug & Abandonment (P&A) work.

“DISMANTLECON is a simple template contract that can be amended and adapted to meet the needs of contract partners. It is designed to be scalable and can therefore be used for small to medium sized projects as well as for larger and more complex ones,” says Grant Hunter, BIMCO’s Head of Contracts and Clauses.

The contract has been written by a group of key stakeholders including marine service providers, marine contractors, P&I and legal experts. The International Marine Contractors Association (IMCA) and the International Salvage Union (ISU) were also represented, and guidance on insurance has been provided by a leading insurance broking and risk management company.

Lastly, valuable input has been provided by a representative of an energy company co-opted on to the subcommittee.

For ease of use, the operational details are set out in twelve additional annexes.