Oil & Gas Insurance Coverage and Tips

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Here are some ideas for how to improve the effectiveness of your coverage will keeping the cost to a reasonable level:

Balance Insurance with Risk

Oil & Gas Pipeline Sufficient insurance coverage and vigorous risk management initiatives for developing and ongoing oil & gas projects are vital to industry participants. Operators and contractors need to have faith in the security of domestic and international enterprises: both to minimize risk, and to properly cover assets and personnel in the event of a loss. Every area of potential risk and exposure for oil & gas firms requires unique and proportionate responses from carriers. It is important to balance concerns, benefits, and drawbacks for choosing to maximize coverage or increase your risk management initiatives. In many cases, the issue is far less one of insurance coverage than the reduction of potential hazards.

Reducing Risk

Oil & gas firms should look to employ overriding strategies to fully manage your areas of risk & exposure, which can vary widely depending on your location and specialization. Risk management is more properly seen as risk avoidance, and identifying methods of restricting those areas where loss is most likely to occur, and shifting risk management resources accordingly.

Terrorism

Oil and gas installations, including pipelines, terminals and distribution systems, are a very popular terrorist target. Particularly those installations in countries outside North America, where explosive attacks on oil and gas pipelines have occurred in 10 different countries around the world between 2000 and 2004. Measures need to be implemented and tested through a full risk analysis and damage assessment so as to minimize the financial impact should such terrorist events occur.

Well Plan Review

Perform an engineering analysis of the mechanical design and operational drilling plan for any well that meets the critical well definition according to the requirements of the control of well insurance policy. This also provides suggestions of the company's Engineering Operations group involving meaningful well control issues, and certifies the drilling plan confirms to industry accepted practices and support the operator during any well control difficulty.

Well Control Rig Audit

Perform an analysis and evaluation of the drilling contractor's equipment that will execute the drilling work for the operator, including a visual inspection of the primary and secondary well control components, given the geologic and mechanical conditions anticipated in drilling the well, and industry-accepted practices.

Information about Van Helden's Oil & Gas industry insurance services.

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