EU Methane Regulation MRV Compliance Cost Analysis

This technical report presents a high-level analysis focused on the financial implications of monitoring, reporting, and verification (MRV) for exporters affected by the EU Methane Regulation. The objective is to provide a cost-focused overview of the expected MRV compliance costs over a three-year period for three typical companies involved in oil and gas production. The analysis outlines the methodology, assumptions, and cost boundaries, emphasizing that internal staff time and mitigation costs are not included. It details a conservative costing approach where producers are expected to achieve OGMP 2.0 Level 5 compliance within three years, with annual verification commencing in the first year. Cost estimates are presented for different company types, comparing best-case and conservative scenarios, and include measurement, inventory, and verification costs. The report concludes that MRV compliance costs are relatively small compared to production value, ranging from 0.03% to 0.6% of production value, depending on the company type and scenario.