Oil Operations Insurance
Oil Operations Insurance includes:
- Property insurance;
- Extraordinary expenses insurance related with the loss of control over drilling well;
- Third party liability insurance against damages to third parties’ life, health or property and by pollution-type externality.
Object of insurance is the property interests of Insured arisen due to oil operations relating to,
1) the damage and destruction of property;
2) the risk of unforeseen costs caused by loss of control over drilling well;
3) the damage caused to life and health of third parties.
Insurance is furnished against loss or damage of insured property for surface, subsoil, marine operations, as a result of Insured accidents outcome as following:
- Fire, explosion, hurricane, storm, water flood, rain storm, hail, lightning struck, overflow;
- Extraordinary oil, gas discharge;
- Loss control over oil well;
- Unexpected appearance of craters, hell-holes, griffins.
The following cases are considered to be insurance events:
1. Total loss (destruction) or damage of insured property exploited on earth’s surface and at sea due to the following events:
- Fire, explosion, hurricane, storm, water flood, rain storm, hail, lightning struck, overflow;
- Extraordinary oil, gas discharge;
- Loss control over oil well.
2. Total loss (destruction) or damage of drilling tools and other equipments exploited underground due to the following events:
- Fire or explosion;
- Extraordinary oil, gas discharge;
- Unexpected appearance of craters, hell-holes, griffins.
3. Loss control over oil well and costs’ appearance:
- Control recovery or attempts of insured oil well control recovery,
- Put out fire or attempt to put out fire of insured surface land and sea wells, other wells fire;
- Put out other fire causing loss of control over drilling well or ignition of insured well;
- Well repeat drilling or recovery or any part of it.
4. Occurrence of third party liability as result of damage caused to life and health of third parties.
Sum insured is set in amount of:
1) property cost;
2) expenses of well recovery;
3) indemnity based on parties agreement.
Insurance rate – from 0,2 % to 1,5 % of sum insured.
