| Class: |
Oil and Gas Exploration and Production |
| Contact: |
Ozzie Rodriguez |
| Coverage: |
Provides coverage globally on both a multi-line or mono-line basis for physical damage to platforms, land rigs, mobile rigs, support vessels and pipelines, as well as associated liabilities, control of well and loss of production exposures. |
| What it Covers |
Control of Well:
Expenses associated with controlling a blowout, which is basically an uncontrolled flow of oil and or gas from a well formation. Coverage can be extended to cover underground blowouts.
Re-drill:
Expenses incurred to restore a well to the depth and condition that existed prior to the blowout.
Pollution Liability:
Covers third party liability for pollutants emanating from a well or formation as a consequence of a blowout. |
| Geography: |
Worldwide |
| Paper: |
New York Marine And General Insurance Company |
| Typical Insureds: |
Oil Lease Operators (Persons or Entities That Have Purchased the Sub-Surface Rights to Oil and/or Gas)
Drilling Contractors Who Have Assumed Such Liability by Contract under a Turnkey Drilling contact |
| Underwriting Concerns: |
Location of Wells
Depth of Drilling
Type of Wells (e.g. Developmental, Exploratory, Workover Operations)
Percentage Interest of Insured in Well
Assumption of Liability of Co-venturers |
| Tips: |
A liability insurance program for oil and gas exploration, development, and production may require many additional coverages, including marine liability, protection & indemnity, and excess liability. In addition, an insured may need to protect itself against losses arising out of a blowout by purchasing an operator’s extra expense (OEE) policy.OEE insurance begins with understanding the contractual relationship between the parties, particularly between the oil lease operator, the drilling contractor, and any subcontractors. |