The US Bureau of Ocean Energy Management (BOEM) has increased the limit of liability for oil-spill related damages from $75m to around $134m for offshore oil and gas facilities.

The move is part of US Government’s ongoing efforts to ensure the safe and responsible production of domestic offshore energy resources.

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Facilities that handle oil and gas in federal and state waters seaward of the coastline will be applicable under the new liability increase.

"BOEM is taking an important step to better preserve the ‘polluter pays’ principle of the Oil Pollution Act and further promote safe and environmentally responsible operations."

Damages that occur from oil spills are applicable in the liability cap. Other liabilities such as oil spill removal costs remain unlimited.

The rule also features a mechanism to regularly update the limit of liability cap in the future to reflect changes in inflation over time based on the Consumer Price Index.

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BOEM acting director Walter Cruickshank said: "BOEM is taking an important step to better preserve the ‘polluter pays’ principle of the Oil Pollution Act and further promote safe and environmentally responsible operations.

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"This is the first administrative adjustment since the Oil Pollution Act was enacted in 1990 and is needed to keep pace with inflation, which has increased 78% since then."

The BOEM’s move to increase the limit of liability comes four years after the BP Deepwater Horizon oil spill in the Gulf of Mexico.

The Deepwater Horizon drilling rig exploded in April 2010, killing 11 men and injuring several others.

The well, which discharged millions of barrels of oil into the Gulf of Mexico, was capped in July and permanently sealed in September 2010.

Energy