International Law on Liability and Compensation in the Offshore Oil & Gas Industry

Abstract

Offshore oil and gas exploration and production comes with risk of release of hydrocarbons in to sea. Today, the probability of such an event is relatively low, but the consequences are nevertheless significant and can cover a vast geographical area. As such, it raises the question as to whether liability and compensation in oil & gas related incidents should be covered under international law. Current international legislation addresses the issue mainly in terms of shipping. This paper attempts to shed light on the topic in relation to oil and gas exploration whilst investigating notable events in the UK and the USA. The findings show that domestic laws of these countries cover the matter sufficiently. However, the question of whether the regulation should fall under international regulation can unfortunately not be answered with confidence as it would require a test-case of a situation where an oil spill affects multiple littoral states.

Advancing Offshore Oil and Gas Facilities: A Comprehensive Review of Innovative Maintenance Strategies for Enhanced Reliability and Efficiency

“…These facilities are characterized by their remote locations, extreme weather conditions, and complex technological requirements, making them a unique sector within the energy industry (Sayed et al, 2022). The exploration and production of hydrocarbons from offshore reserves became economically viable in the mid-20th century, prompting the emergence of offshore drilling and production platforms (Brake, 2016). Over the years, technological advancements, including seismic imaging, directional drilling, and subsea engineering, have significantly enhanced the efficiency and safety of offshore operations, enabling access to deeper and more challenging offshore fields.…”