A discussion covers the financial assurance system (bonding system), an innovative incentive mechanism being adopted by several countries in different productive areas with the objective of guaranteeing the availability of sufficient financial resources for the compliance of end-of-leasing environmental obligations; a general outlook of the many decommissioning related issues that economically impact oil projects around the world; several advantages provided by the bonds, e.g., ensure satisfactory regulatory compliance, safeguard government and taxpayers by attaining reasonable protection from default at a minimum increase in project costs, and protect the environment from potential harm resulting from failure to carryout proper decommissioning operations in a timely fashion; corporate environmental costs and liabilities related to the abandonement and decommissioning processes; and a decision model aimed at improving financial performance from companies under a hypothetical bonding regime within the Brazilian legal and fiscal framework. This is an abstract of a paper presented at the SPE International Conference on Health, Safety and Environment in Oil and gas Exploration and Production (Stavanger, Norway, 6/26-28/2000). Anderson, R.C., Lohof, A.Q., (1997) The United States Experience with Economic Incentives in Environmental Pollution Control Policy, , U.S. Environmental Protection Agency - EPA, Environmental Law Institute, Washington, D.CBorghini, S., Bartolomeo, M., Molinari, S., Ratti, S., The role of environmental costs and liabilities in the decision making process of oil and gas exploration and production companies (1998) Paper SPE 46654 Presented at the 1998 SPE International Conference on Health, Safety and Environment in the Oil and Gas Exploration and Production Proceedings, , Caracas, Venezuela(1999) Editora Brasil Energia, Ltda., , several issues. 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