Requirements for offshore installation owners to have funds available to respond to an oil spill
Offshore installations must have Oil Spill Contingency Plans (OSCPs) to support efficient, effective responses to oil spills at sea.
To implement an OSCP, the owner of an offshore installation must:
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hold a current certificate of insurance recognised by the Director of Maritime NZ
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apply to the Director for approval of their OSCP.
Without OSCP approval, offshore installations cannot legally operate.
Before approving an OSCP, the Director must consider several matters, including whether the offshore installation has the financial resources to implement its plan.
Legal requirements for financial resources and insurance
Section 385H of the Maritime Transport Act 1994 requires offshore installations to hold a current certificate of insurance recognised by the Director. This ensures the owner can cover the costs of cleaning up any oil pollution, and pay for any oil pollution damage, associated with the installation.
Marine Protection Rules Part 102.8A(1)(a)(i)(B) states that the Director must issue a certificate of insurance only if satisfied that the insurance or financial security held by the owner, in respect of an installation, is no less than the amount determined by the scoring matrix, based on the worst‑case oil spill scenario.
Marine Protection Rules Part 131.24(1)(b) states that the Director must be satisfied that:
“the applicant will have the ability to implement the plan taking into account the financial resources available to the applicant and any cover for first party claims that the applicant has [as operator] under any contract of insurance or other financial security.”
Maritime NZ’s position on when financial resources must be available
Maritime NZ requires owners of offshore installations to have financial resources available to start responding immediately to an oil spill, rather than waiting for insurance or other financial security to be released. It is not acceptable for a response to be delayed because:
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funds are not available, or
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the owner is waiting for insurance funds to become available.
Owners of offshore installations must also have sufficient funds available to implement the entire response in line with their OSCP.
Owners must provide Maritime NZ with evidence of the financial and insurance arrangements they will use to implement their OSCP, including when funds will be available. This evidence is required:
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when seeking OSCP approval
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when any changes are made to the OSCP.
Under Marine Protection Rules Part 131.22(2), Maritime NZ can also request extra information as part of assessing any OSCP application.
*The matrix is set out in Appendix 5 of the Marine Protection Rules Part 102.
Key terms
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Offshore Installation |
An offshore installation is any artificial structure, including a floating structure that is not a ship, within New Zealand continental waters that is:
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