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EU delays penalty enforcement for methane and carbon emissions rules to 2030
The European Commission recommended suspending financial penalties for oil and gas companies that breach new import-related methane reporting rules through 2029, effectively delaying strict enforcement of the rules until 2030.
Citing the conflict in the Middle East, tight global energy markets and supply risks, the commission said this move acknowledges “possible risks identified by stakeholders” and difficulties in the implementation of the rules.
The EU Methane Regulation, which went into effect in August 2024, establishes strict measurement, reporting and verification mandates, as well as leak detection and repair rules. It also bans routine venting and flaring.
More importantly, it requires EU countries importing oil, gas and coal to track, measure and verify methane intensity levels for deliveries of those products starting in January 2027.
Exporters are required to supply data matching EU measurement standards or adhere to the Oil and Gas Methane Partnership 2.0 Level 5 Gold Standard. Under the regulation, non-compliant companies could face severe fines reaching up to 20% of their annual revenue.
With this new recommendation, however, member states are now advised to waive fines for 2027, 2028 and 2029 import requirements so that enforcement does not trigger energy supply shocks in the EU.
However, the underlying methane regulation text remains active, meaning importers are still officially expected to pursue compliance and monitor leaks.
BOEM holds third lease sale in US Gulf under OBBA
The US Bureau of Ocean Energy Management (BOEM) held its third regional oil and gas lease sale, known as the Big Beautiful Gulf 3, on 12 August. The sale generated $82.7 million in apparent high bids for 59 blocks across 330,150 acres in the US Gulf, following earlier sales under the One Big Beautiful Bill Act (OBBA) schedule.
Of the 59 blocks that received bids, 52 drew single offers, five received two bids, one brought in three offers and one received four bids.
Alaminos Canyon Block 380 drew the highest apparent high bid, of $7.7 million from Murphy E&P. Keathley Canyon Block 258 attracted the most interest, receiving four bids, including the second-highest apparent high bid at $7.5 million. Other top bids included Murphy’s $7.1 million offer for Alaminos Canyon Block 691, Shell’s $6.1 million offer for Walker Ridge Block 21 and Equinor’s $5.3 million offer for Walker Ridge Block 55.
Chevron submitted a high bid of $4.7 million for Keathley Canyon Block 430, and Murphy offered $4.1 million for Alaminos Canyon Block 735. Chevron offered $3 million for Green Canyon Block 384 and $2.4 million for Green Canyon Block 340. LLOG submitted an offer of $2.2 million for Atwater Valley Block 63.
US Senate committee approves extension for PPIF
On 29 July, the US Senate Energy and Natural Resources Committee approved the License to Drill Act. The legislation, which passed the US House in June, extends the Bureau of Land Management’s Permit Processing Improvement Fund (PPIF) through fiscal year 2037. The PPIF is a US federal program that uses industry fees to help the BLM process oil and natural gas drilling applications. It funds staff and resources to reduce approval backlogs. Companies pay a fee when they submit an Application for Permit to Drill to the federal government.
As of 17 August, the Senate had not scheduled a full vote for the legislation.
Urging Congress to complete passage before the PPIF expires on 30 September, Western Energy Alliance President Melissa Simpson emphasized the importance of maintaining support for federal employees responsible for managing energy development on public lands. “Energy development depends on a permitting system that has the resources to function efficiently. This legislation helps ensure those offices have the resources they need to do their jobs,” she said.
New Zealand awards first offshore exploration license since drilling ban reversal
The New Zealand government has awarded its first offshore oil and gas exploration license following its 2025 reversal of a drilling ban. Australian oil and gas operator EnZed Energy received a permit from New Zealand Petroleum & Minerals, the country’s regulatory body for exploration and mining, for 12 years in the Taranaki Basin.
Under the permit’s work program, EnZed Energy will undertake a staged exploration program, beginning with a study of existing seismic data and geological studies to better understand the prospect’s potential.
While the Minister for Oceans and Fisheries of New Zealand, Shane Jones, said the permit marks a major milestone for the country’s energy sector and “shows that, without doubt, we are open for business,” the industry noted that awarding one permit is only a start.
“Rebuilding the sector will take more applications and sustained exploration to unlock domestic gas needed for affordable, reliable energy,” said John Carnegie, CEO of Energy Resources Aotearoa, an industry advocacy group in New Zealand.
With existing gas fields maturing, exploration remains an important part of New Zealand’s future. Mr Jones noted that, as of 1 January 2026, the country’s proven and probable natural gas reserves had declined 23% from the previous year to 731 petajoules – the lowest level since records began more than two decades ago.
