The Inactive Liability Reduction Program (ILRP) is a new results-based program which aims to reduce inactive liabilities held by oil and gas companies. It will require oil and gas licensees to retire a percentage of their inactive liabilities each year to gradually reduce the percentage of inactive wells and facilities in the province.
The ultimate objectives of the program are to:
- Prevent an increase in orphan wells and facilities in the province;
- Ensure industry bears the responsibility to meet their end of life asset retirement obligations; and
- Ensure licensees are managing their liabilities in a timely manner.
For information related to and regulations surrounding the ILRP, please refer to The Financial Security and Site Closure Regulations (FSSCR) and Directive PNG025: Financial Security Requirements.