Miller goes the extra mile for oil pipeline replacement

Miller persuaded underwriters to provide regular payments to a major national oil company, allowing them to replace a faulty pipeline whilst avoiding a major cash flow headache.

Our challenge

A Danish North Sea oil pipeline suffered a number of buckles during its construction which resulted in considerable replacement costs. The full extent of damage was not known until the entire 11km of pipeline had been laid, connected and pressure tested. 

An investigation found that the damage was caused by crew negligence – an insured peril – and that it would be more economical to completely replace, rather than repair, the full length of pipeline. The replacement required a GBP35m deposit payment plus various staged payments throughout the build. 

Our solution

Miller persuaded underwriters to issue regular payments on account – twelve in total – eliminating any client cash flow issues. Unlike the usual practice for indemnity policies, the client was never forced to use their own funds and subsequently seek reimbursement from underwriters. 

This is a good example of the comprehensive and proactive support offered by Miller’s claims team, and how we smooth the claims process for clients.