Membership
Who may become a member of OPOL?
OPOL is structured so that only the operator, or intending operator, under an offshore licence may be a party. In the case of a joint venture, the operator assumes the obligations under OPOL for all other participants. The operator, however, to the extent of any liability it incurs under the OPOL Agreement, will have rights of recourse against its co-venturers for their respective participating shares in the venture under the terms of the standard joint operating agreement.
Click the button to view the flow chart that shows what it takes to become a member of OPOL and remain part of the OPOL Agreement.
To become a Member, you’ll need to submit a Membership Application Form (Form A), followed by the relevant evidence of Financial Responsibility as detailed in Form B and in the text which follows. Alternatively, if you are not yet an Operator but intend to become one, then a Form C should be submitted rather than an FR form.
In either case, the completed documents should be submitted to admin@opol.org.uk
Providing evidence of financial responsibility
All operators wishing to be members of OPOL must then provide evidence of financial responsibility, as detailed in The Rules, which make all operated offshore facilities in UK waters or, if applicable, in the territorial waters of any other Designated State, subject to OPOL. The operator must, in respect of joint ventures, provide evidence in respect of the total venture (100% interest), irrespective of the extent of its interest in that venture.
Why is evidence of financial responsibility necessary?
As well as providing evidence of cover for all offshore facilities satisfying a party’s obligations under the OPOL Agreement and the Licensing Regulations, this is also a protection to claimants evidencing that the party has made adequate provision to meet the obligations on a 100% basis assumed under OPOL. It also benefits any non-operating co-venturers to the extent of their interest where they have agreed to contribute to the payment of claims by the operator arising from joint operations.
How is evidence of financial responsibility provided?
The operator may arrange to use any one or a combination of the following methods:
1) Insurance
The insurance cover must be for an amount of not less than US $250 million for any one incident and a limit of US $500 million in the aggregate per annum (subject to any reduction permitted by the Association to take account of any additional evidence of financial responsibility provided to the satisfaction of the Association); provided however that such an annual insurance aggregate limit shall not operate as a limitation of a member’s liability under OPOL. A maximum policy deductible of US $10 million in respect of any one occurrence will be permitted. Insurers are required to satisfy the minimum credit or financial strength rating as set out under The OPOL Rules.
Evidence of valid insurance is provided to the Association by using either form FR-1 (the Insurer verified FR) or FR-2 (The insurance broker verified FR) forms, whichever is applicable.
If the member is insured under insurance policies arranged by a parent or affiliated company on a group basis then evidence of valid insurance is provided by using form FR-1G or FR-2G whichever is applicable.
2) Insurance arranged via an Insurance Broker or Agent
If your insurance is placed with insurers by an insurance broker or agent, then you should use form FR-2, which is signed by your appointed insurance broker or agent to evidence and confirm coverage is compliant with The OPOL Rules and the period for which the insurance remains in place.
If the member is insured under insurance policies arranged by a parent or affiliated company on a group basis then evidence of valid insurance is provided by using form FR-2G.
3) Guarantee from a Guarantor
Use form FR-3 if you are acting as a Guarantor, granting a Guarantee in favour of an Operator to evidence their financial responsibility. This includes the schedule for your Guarantee.
If the Guarantee is provided by a parent or affiliated company on a group basis then evidence of a valid guarantee is provided by using Form FR-3G.
4) Qualification as a Self-insurer
This can be done by providing a financial statement meeting certain specified criteria. The consolidated financial statement of a parent company may be used, in which event an acknowledgement of commitment is required on Form FR-4.
What does it take to remain a member of OPOL?
Evidence of financial responsibility must be maintained throughout the period that operations are taking place. If the financial responsibility is limited in time, is terminated or materially altered for any reason, and operations are still continuing beyond such termination, material alteration or expiry date, the Association must be advised and further evidence provided demonstrating the appropriate continuation of financial responsibility. The Association will monitor the expiry of member’s evidence of financial responsibility annually or at such greater frequency as it may deem necessary. If operations will not be continuing the operator should certify, no later than expiry or termination, that it will cease to be an operator in compliance with the Continuous Certification Programme.
Annual subscription
An annual subscription is payable by all parties based on the number of members at the beginning of each calendar year and the budgeted total administration costs of the Association for that year is borne equally by all members. The OPOL Association issues an annual invoice in December of each year for the following year.
When may a party withdraw from OPOL?
A party can withdraw from The OPOL Agreement with no less than 3 months’ written notice, effective at any date but to be given no later than 1st September in any calendar year:
1: If it has not been an operator of an offshore facility to which The OPOL Agreement is applicable at any time since it became a party to The OPOL Agreement; or
2: If it, having been the operator of one or more offshore facilities to which the OPOL Agreement is applicable whilst a party to The OPOL Agreement, shall have ceased to be the operator of all such offshore facilities.
A party also has the right to withdraw if it votes against a Resolution to amend OPOL, and that Resolution is adopted. If a member wishes to terminate their OPOL membership, a Notice of Termination should be submitted to admin@opol.org.uk.
Membership after cessation of Licensed Operations
If the member has ceased conducting Licensed Operations but wishes to retain its OPOL membership it will be required to complete and submit a Form D.
Key Documents
Submitting Forms
Please submit forms to admin@opol.org.uk