CRA advises on valuation of future decommissioning costs of oil company

Pipes Oil and Gas

CRA was retained in a SIAC arbitration to ascertain the appropriate discount rate and present value of over US$ 5 billion in future decommissioning costs of a portfolio of oil platforms.  

Dr. Tiago Duarte-Silva showed through economic logic that the liability nature of decommissioning costs affects the appropriate way to value them and provided evidence of how companies in the same sector actually value future decommissioning costs. He was supported by Swati Kanoria and Avivah Malin.

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