Legally required costs to decommission and remediate a site at end of life, such as plugging wells or removing infrastructure. Operators budget ARO years in advance, which can create late-project work opportunities for subcontractors. Understand how ARO timelines affect contract scope, since decommissioning work often has strict regulatory deadlines.
ComplianceGlossary Term
ARO (Asset Retirement Obligations)
Related Terms
High-Energy Hazard
ComplianceAny source of stored or released energy that can cause serious injury or death, such as pressurised systems, suspended loads, or live electrical equipment. Subcontractors must identify these hazards before starting work and follow site-specific isolation procedures. Failure to control high-energy hazards is a leading cause of fatalities in oil and gas and construction environments.
Api 580 (american Petroleum Institute Standard 580)
ComplianceA risk-based inspection standard used on oil and gas facilities to prioritise equipment checks by failure likelihood and consequence. Subcontractors may need to align their inspection scopes and documentation to meet API 580 requirements on client sites.
RAGAGEP (Recognised and Generally Accepted Good Engineering Practices)
ComplianceIndustry standards, codes, and technical guidelines that define minimum safe design and operating requirements. Subcontractors must follow RAGAGEP when installing, inspecting, or maintaining equipment on client sites. Non-compliance can trigger regulatory violations or disqualify you from future contracts.
OFAC (Office of Foreign Assets Control)
ComplianceA U.S. Treasury agency that enforces sanctions against designated countries, companies, and individuals. Subcontractors must screen clients and vendors against OFAC lists before accepting contracts or payments. Working with a sanctioned party can result in severe fines and contract termination.
MSHA (Mine Safety and Health Administration)
ComplianceA U.S. federal agency that regulates safety at mines and quarries. Subcontractors working on mine sites must comply with MSHA standards, separate from OSHA rules. Workers may require site-specific MSHA training before mobilising.
Asme Bpv (boiler and Pressure Vessel) Code
ComplianceA set of standards governing the design, fabrication, and inspection of pressure vessels and boilers. Subcontractors working on pressure equipment must ensure their work meets applicable ASME BPV sections or risk failing inspection. Non-compliance can result in project shutdowns, liability exposure, and lost contracts.
Latest Compliance News
Compliance
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