Oil & Gas production companies, Renewable Energy companies, Mining companies, Quarries Decommissioning bonds are often required to cover potential decommissioning costs in the energy industries when an asset comes towards the end of its useable life. Restoration bonds may be needed to secure the cost of returning land to its original state after completion of mining or quarrying activities. Both of these bonds could replace the requirement for a Letter of Credit (LOC) that would usually be issued by a bank. - Lockton Singapore
Oil & Gas production companies, Renewable Energy companies, Mining companies, Quarries
Decommissioning bonds are often required to cover potential decommissioning costs in the energy industries when an asset comes towards the end of its useable life. Restoration bonds may be needed to secure the cost of returning land to its original state after completion of mining or quarrying activities. Both of these bonds could replace the requirement for a Letter of Credit (LOC) that would usually be issued by a bank and in turn free up the clients working capital.
Regulatory Bonds
Companies operating in regulated industries or sectors
Companies that operate in a regulated industry or activities such as online payment services, auctioneers and insolvency practitioners may be required to provide a regulatory bond to procure and maintain their licenses to operate. Additionally, companies that don’t have any directors who are residents within the domiciled country may, in some territories, be required to post a bond to cover potential fines for breaches of the relevant company law.
Performance Bonds
Who are they for? Main Contractors, Sub-Contractors, Service Providers.
Performance bonds guarantee that the Bonded Principal will undertake and fulfil their contractual obligations agreed with the Beneficiary.
In the event of contractual default (usually via insolvency of the Principal), the Beneficiary will hold security in the form of the bond which will reimburse and pay out losses and damages up to the maximum bond amount.
Environmental Bonds
Who are they for? Waste & Recycling companies
The Environment Agency “EA” will often require you to provide them with an EA bond as a legal obligation in order for you to be granted or maintain your relevant licences. These licences could be in relation to but not limited to the handling of hazardous materials, the operation of a landfill site or transporting waste into and out of the UK.
