Oil & Gas UK Issues Renewed Guidelines for Industry’s Emergency Preparedness and Response Plans

Oil & Gas UK recently published guidelines with its most up-to-date information aimed at helping operators ensure they have the required financial measurements in place to meet the cost of cleanup for an oil release.

The Liability Provision Guidelines for Offshore Petroleum Operations aim to assist licensees in demonstrating they can cover their costs for control, response, and compensation for any unintended and uncontrolled release of hydrocarbons that might result from their activities.

Louise O’Hara Murray, environment manager at Oil & Gas UK, said, “These guidelines are part of the industry’s preparedness and response plan in the event of an oil release. They outline the level of financial liability required and how this should be declared or demonstrated to the UK’s Offshore Petroleum Regulator for Environment and Decommissioning.

“The guidelines cover exploration, appraisal, and production assets and aim to simplify the process and increase transparency for operators by establishing an industry agreed level. Previously, each operator was responsible for carrying out their own modeling using a formula in the guidelines to calculate their liability.

“Using the latest 3D modeling techniques, we have modeled theoretical hydrocarbon releases using eight locations on the UKCS (UK continental shelf) under different conditions for a range of release volumes. This helps us more accurately identify the level of financial provision that licensees must have in place in their preparedness plan should an oil release occur.”

These guidelines will replace the Guidelines to Assist Licensees in Demonstrating Financial Responsibility to Department of Energy and Climate Change for the Consent of Exploration & Appraisal Wells in the UKCS Issue 1, November 2012, and will be effective from 1 April 2018.

Find the guidelines here.

 

 

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