Report from the Commission to the European Parliament and the Council

This report provides an overview of how liability for damage from offshore accidents in oil and gas exploration and production is addressed in the EU. In effect, in analyses how Europe deals with a series of societal dilemmas arising in relation to offshore oil and gas: first, who is liable for what kinds of damage and loss to whom; second, how to ensure that liable parties have sufficient financial capacity to provide rightful compensation for the damage and loss for which they are liable; and third, how compensation should be disbursed so that it reaches legitimate claimants quickly and the risks of cascading impacts to the broader economy are minimized.

This report aims to fulfil the Commission's obligations under Article 39 of the Offshore Safety Directive, which requires the Commission to submit reports on the following:

An assessment of the effectiveness of the liability regimes in the Union in respect of the damage caused by offshore oil and gas operations, including an assessment of the appropriateness of broadening liability provisions;

An examination of the appropriateness of bringing certain conduct leading to a major accident within the scope of Directive 2008/99/EC (the Environmental Crime Directive);

A description of the availability of financial security instruments for offshore operations; and

A description of the handling of compensation claims for offshore accidents.