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Norway signs up to oil spill protocol.
(From Lloyds List)
Byline: Aware that its northern coast in particular is vulnerable to oil casualties, the country has committed to a supplementary tier of compensation, writes Sandra Speares
NORWAY'S signing of the new protocol for a supplementary tier of compensation for oil spills reflects both the realisation that the current regime may not provide adequate funding, and that the country's coastline is increasingly vulnerable, according to Trond Eilertsen, head of the the shipping and offshore group of Wikborg Rein.
While compensation available from the existing Civil Liability and Fund Conventions was increased by 50% last November, with the bill for the Prestige oil spill estimated in the region of €1bn ($1.2bn), there has been growing awareness that further funding needs to be provided to cover the most catastrophic spills.
Norway, Mr Eilertsen says, is very aware that the north coast of the country is 'heavily exposed to oil casualties'.
There has been a significant increase in the amount of oil being shipped in vessels passing the Norwegian coast from Russia and forecasts predict that these volumes will continue to rise.
Signing up to the third tier of compensation for oil spills is only one measure that the Norwegian government is taking to address concerns.
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