Willis Launches New Insurance Facility to Cover Offshore Decommissioning Risks
London, UK, December 14, 2012 – As many oil and gas installations reach the end of their
productive life, the energy industry faces new risks associated with decommissioning and dismantling these platforms, warns
Willis Energy, a division of Willis Group Holdings plc (WSH:NYSE), the global insurance broker.
In the years ahead a significant number of offshore oil and gas platforms will be decommissioned. In
the North Sea alone, for example, it is estimated that over the next few decades the
total costs associated with offshore decommissioning could reach £30 billion.
“Dismantling and removing large offshore platforms, particularly those located in inhospitable environments, is a serious operational and
logistical challenge. But increasingly legislation compels companies to do this,” explained Chris Dear, Managing Director of
Willis Energy. “As a result, energy companies face a number of significant risks, including seepage and
pollution and complex contractual liabilities.”
“Major platform operators and leading insurance underwriters believe that the unique exposures arising out of these specialised
projects require a bespoke insurance policy,” he continued.
To assist clients with these challenges and help them manage the risks arising from decommissioning offshore oil
and gas platforms, Willis has launched an “Offshore Dismantling & Removal Insurance Facility”, in conjunction with
a group of Marine and Energy insurers committed to underwriting this class of business.
The policy is designed to address specific decommissioning risks, including contractual liability exposures. The policy also covers
seepage, pollution and contamination risks.
Willis has extended standard removal of wreck cover to also address the high profile “heavy lifting” risks
unique to decommissioning projects. The policy also provides platform operators with extra cost and expense cover
and, if required, physical loss and damage cover. Willis has also developed a risk matrix to
help clients assess their exposures.
Dear added: “Members of the Willis team have designed Offshore Dismantling & Removal Insurance Programmes for some
of the largest projects in the world. We firmly believe that, in conjunction with our Decommissioning
Security product, our new Offshore Dismantling & Removal Facility places Willis at the forefront of risk
transfer solutions for platform decommissioning activity.”
Willis Group Holdings plc is a leading global insurance broker. Through its subsidiaries, Willis develops and delivers
professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations, public
entities and institutions around the world. Willis has more than 400 offices in nearly 120 countries,
with a global team of approximately 17,000 employees serving clients in virtually every part of the
world. Additional information on Willis may be found at www.willis.com.
# # #