Willis Energy, in conjunction with a group of marine and energy insurers, has launched a new type of insurance policy designed to help energy companies mitigate the risks they face when decommissioning offshore oil and gas platforms. Willis estimates that in the North Sea alone, the total costs associated with decommissioning oil and gas installations could reach £30 billion over the next two decades.
To help deal with these costs, Willis has launched an offshore dismantling and removal insurance facility, which is designed to address specific decommissioning risks, including contractual liability exposures. The policy also covers seepage, pollution and contamination risks.
Willis has extended standard removal of wreck cover to also address the high profile ‘heavy lifting’ risks unique to decommissioning projects. The policy also provides platform operators with extra cost and expense cover and, if required, physical loss and damage cover. Willis has also developed a risk matrix to help clients assess their exposures.
“Dismantling and removing large offshore platforms, particularly those located in inhospitable environments, is a serious operational and logistical challenge. But increasingly legislation compels companies to do this,” explained Chris Dear, managing director of Willis Energy.
“As a result, energy companies face a number of significant risks, including seepage and pollution and complex contractual liabilities. Major platform operators and leading insurance underwriters believe that the unique exposures arising out of these specialised projects require a bespoke insurance policy,” he continued.
Willis, marine insurers, energy insurers, oil, gas