Government introduces insurance rules for oil firms

The government has today introduced new insurance rules in the event of North Sea oil spills.

The rules, drawn up by the Department of Energy and Climate Change, mean that UK offshore oil and gas firms will have to prove they have “financial responsibility” for drilling operations before cover is allowed, according to the BBC.

The changes were tabled after a review following the Deepwater Horizon oil spill disaster in 2010.

The department’s guidelines hint that current offshore oil and gas cover is enough for most firms, but that companies in more treacherous waters may need more cover.