Sompo Canopius unveils innovative drilling policy
Sompo Canopius has launched a new drilling well sidetrack (DWST) product designed to provide coverage for a range of potentially expensive critical well scenarios not covered under standard well control policies.
The company said the main focus of the product is mitigating well cost escalation that occurs if a sidetrack is needed for a well to be drilled to its target bottom hole due to an unforeseen event.
Sompo said the product has already seen significant initial interest from the oil and gas industry, which is dealing with ongoing challenging commodity prices. The sector is therefore keenly focused on the economics of some exploratory drilling prospects, which are commercially high risk in any case.
In such difficult conditions, a cost overrun becomes even more punitive and the aim of DWST is to provide risk transfer for unbudgeted expenses that might result from a range of unforeseen circumstances, the insurer said.
Steve Warren, group head of energy & engineering, said: “With the engineering expertise of Francis Lobo, head of upstream oil & gas engineering, we have created a specific, clearly worded product that provides security and clarity of cover.
“DWST helps to increase certainty in our clients’ financial planning and ensure the robustness of well and project economics. We are hugely encouraged by the interest that is already being shown by clients and brokers, and very pleased that we can work in partnership to help them manage their risk in this way.”
Don't miss the latest industry news - Sign up to our free email newsletters
Reformed NFIP bill praised by industry groups
Cat losses will boost pricing in commercial insurance: Zurich
Xceedance invests in re/insurance blockchain startup
Ascot revises 2018 plan to anticipate steep growth in GWP
Liberty Specialty Markets enters project finance market
Italian insurers remain robust after Solvency II transition
Charles Taylor InsureTech targets life with new cloud-based platform
