The move, which is a part of the US government’s efforts to ensure the safe and responsible production of domestic offshore energy resources, comes four years after the BP Deepwater Horizon oil spill in the Gulf of Mexico.
The new liability increase will be applicable for facilities that handle oil and gas in federal and state waters.
Damages that occur from oil spills are applicable in the liability cap whereas other liabilities such as oil spill removal costs remain unlimited.
BOEM acting director Walter Cruickshank said: "BOEM is taking an important step to better preserve the "polluter pays" principle of the Oil Pollution Act and further promote safe and environmentally responsible operations.
"This is the first administrative adjustment since the Oil Pollution Act was enacted in 1990 and is needed to keep pace with inflation, which has increased 78 percent since then."
The rule includes a mechanism to regularly update the liability cap limit in the future in order to reflect changes in inflation over time based on the Consumer Price Index.
The Deepwater Horizon drilling rig exploded in April 2010, killing 11 men and injuring several others.
