Operators’ extra expenses
We can place cover for expenses following unintentional flow from wells of drilling fluid, oil and gas or water.
More specifically cover will include:
- The cost of re-drilling the hole (excluding the cost of re-drilling a relief well)
- The cost of cleaning up seepage and pollution
- Bodily injury and property damage caused by seepage, pollution or contamination
- Costs and expenses incurred in defence of any claim resulting from actual or alleged seepage and pollution
- Oil lease property in the assured's care, custody and control
- The cost of evacuating people, animals and property (other than assured's employees and property) following governmental or regulatory authority orders
- The costs of preventing any unintentional flow of drilling fluid, oil and gas or water from the well
- Acts of terrorism
- Limits are flexible and scaled according to clients' requirements, coverage can also be extended to include joint ventures' interest
Drilling wells are covered on policies in place when drilling started even if it continues after expiry. Producing or shut-in wells are covered for the period of the policy.
The minimum details required to offer a premium indication are as follows:
Schedule of all wells showing:
- Footage (total measured depth)
- Status (drilling, producing, shut-in, plugged etc)
- Location
- Clients' average interest (if less than 100%)
- Whether operating or non-operating interest
- Limit of liability required (usually at least three times the cost of drilling the well)
- Five year loss record (with details of deductibles applicable to such losses)
- Details of owner, including management experience, other operations, maintenance and safety procedures
- Expiring markets, terms and conditions (if available)
