Bottom Line: The EU’s new offshore oil and gas exploration legislation is designed to prevent another Gulf of Mexico incident and will force explorers to submit special hazard reports and emergency-response plans as well as to demonstrate extended liability coverage.
Analysis: The legislation was approved by the European Parliament last week. Specifically, the new legislation requires exploration companies to submit special hazard reports and emergency-response plans BEFORE getting approval to launch offshore operations. Explorers will also be required to prove their ability to cover liabilities in an extended zone of operations up to 370 kilometers off the coast. Previous legislation put this at 22 kilometers off the coast. Affected will be some 1,000 offshore installations across Europe, with the bulk on the United Kingdom (486).
Recommendation: EU governments are expected to support the new law across the board, and its final approval is expected to be just a formality at this point and most likely to be achieved before the end of the year, if not sooner.
Intel Notes are provided by ISA Intel. For more information, contact ISA Intel Executive Director Anes Alic (email@example.com)