However, the best practice in the U.K. North Sea is for the partners in any asset to enter into a decommissioning security agreement. These disagreements, if you're not familiar with them, required the partners to provide decommissioning security. The amount, the type of security determined is through a complex formula, unique to every field and correlated to each company's credit quality.In our case and in Alba, we issued a cash collateralized letter of credit from a major international bank, and we pay a fee to investors who cash collateralized that LC. This transaction is simple in concept, but it was very difficult in execution, as you know. It took us right to the last minute that get that deal done. But we were able, as a team to get the deal done. That was through a fair amount of perseverance, appropriate financial structuring for the company and the transaction that we were looking at, and, I think, most importantly, a strong belief that the Alba transaction was worth the effort that we had to go through to get it done.
Endeavour International Management Discusses Q2 2012 Results - Earnings Call Transcript
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