Regulation
Oil and gas licensing regulations in the UK
As a response to the Deepwater Horizon (Macondo) incident, the European Union (EU) passed Directive 2013/30/EU on the safety of offshore oil and gas operations, to establish minimum requirements for preventing major accidents in offshore oil and gas operations and limiting the consequences of such accidents. In the UK, the requirements of the Directive have been transposed into national law through the Offshore Petroleum Licensing (Offshore Safety Directive) Regulations 2015 (the ‘Licensing Regulations’). These regulations remain in full force and effect in the UK notwithstanding the UK’s exit from the EU.
Financial Responsibility
The UK Energy Industry Association (OEUK) represents energy industry participants, including offshore oil and gas operators. Pursuant to the Licensing Regulations, OEUK has produced Liability Provision Guidelines for offshore petroleum operators on the UKCS. For more information about OEUK and the Liability Provision Guidelines, visit oguk.org.uk
It is recommended that new members seeking to satisfy their OPOL financial responsibility obligations by insurance, consult with their insurance brokers or insurers to ensure they have confirmed insurance coverage for OPOL liabilities endorsed onto their insurance policies. Find out more about membership and providing evidence of financial responsibility.
Further information on UK oil and gas offshore environmental regulation, including on the financial responsibility requirements of the Licensing Regulations can be found on the UK Government website.
For the required financial responsibility obligations in other Designated States please refer to the relevant legislation and to any guidance provided by the regulators in each of those states.