Any subsidiary company holding a production licence on the Norwegian Continental Shelf (NCS) must provide to the Ministry of Petroleum and Energy a standard parent company guarantee (PCG) covering its obligations relating to the petroleum activities in which it participates.
The scope of the PCG and who is entitled to claim under it has been subject to discussion. As the PCG has never been called on and its contents have never been tried before a court, these issues remains to be finally determined. This update seeks to clarify the scope of the standard PCG and identify the third parties protected by it.