Energy

 

There are no significant differences in the principal insurance structure in the energy sector or in the project and infrastructure sectors. (Please see attached web-link.)

However, in respect of the insurance lines in Upstream Energy Development and Production, there is a unique line of business in this project field, which is not seen in other project fields. That is “Cost of Control Insurance in Blowout Incidents”. (We call it “COC/COW/OEE” as per below.) Such special insurance will be introduced briefly below.

Brief Introduction of Insurance for “Blowout Incidents”

Insurance line Contents of the Terms
Energy Exploration and Development Insurance(COC/COW/OEE)
We describe it as…
COC (Cost of Control)
COW (Control of Well)
OEE (Operator’s Extra Expense)
This insurance covers the costs which the policyholder paid in respect of controlling the blowout as per below items.

<Principal terms>

* Section A -
Costs and/or expenses for the control of well
a:
Cost for the equipment and accessories necessary for the well control
b:
Cost for the relief well drilling
c:
Expenses related to the service of the person or company that specializes in control of the well
* Section B -
Re-drilling Expense
* Section C -
Seepage & Pollution and Clean-up Expense


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