Regulation
Oil and gas licensing regulations in the UK
As a response to the Deepwater Horizon incident, in June 2013 the European Union 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.
Financial Responsibility
The UK Oil and Gas Industry Association (OGUK) represents operators and has produced pursuant to the Licensing Regulations Liability Provision Guidelines for all offshore petroleum operators within the UKCS. For more information about OGUK visit oguk.org.uk
It is recommended new members, (whether to the sector or to the geography) seeking to satisfy their OPOL financial responsibility obligations by insurance, liaise with their insurance brokers or insurers to ensure they have confirmed insurance protection for OPOL liabilities endorsed onto their insurance policies. Find out more about membership and providing evidence of financial responsibility.
Further guidance from BEIS to UK Offshore Oil & Gas Operators on the demonstration of financial responsibility before consent may be granted can be found on the UK Government website.
For the required financial responsibility obligations in other Designated States please refer to the relevant legislation in each of those states.