Bill strengthens oil spill insurance obligations
The Maritime Transport (Offshore Installations) Amendment Bill which has been introduced to Parliament has the objective of clarifying and strengthening the requirements on owners of offshore oil and gas installations to hold insurance or other financial security in relation to their liability for clean-up and compensation resulting from an oil spill.
The bill has been introduced by Associate Transport Minister Julie Anne Genter. It amends the Maritime Transport Act 1994.
The Act implements a polluter-pays regime, under which owners have unlimited liability for the cost of pollution damage resulting from a spill at their facilities in New Zealand waters. Anyone affected by oil damage from an offshore installation is entitled to make a claim against the owner. The owner’s liability includes the cost of measures to prevent or reduce pollution damage, the cost of reasonable measures to reinstate the environment, and the loss of profit from impairment of the environment. The bill does not change the owner’s liability.
Last updated on the 16th September 2019