The present paper describes different financial assurance systems (bonding systems) used to provide economic incentives for environmental compliance within the oil sector. Bonds may be applied in all phases of oil projects to reduce the risk of accidental, continuous, and, mainly, ex post environmental damages. The most common application of bonds is aimed at guaranteeing or funding end-of-leasing obligations, including closure and decommissioning operations. Currently, there are several forms of instruments available that could satisfy bonding requirements. This paper discusses some of the main characteristics and attributes of such instruments according to the perspectives of both regulators and industry. Since bonding requirements are currently present in several parts of the world, based on a hypothetical scenario, this paper proposes a model to enable lessees to anticipate and measure potential financial impacts of such requirements on the cash flow of oil projects. 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