The importance of oil risk insurance

Large companies in the oil and gas industry require vendors to hire specific insurance for each activity in the segment that are called oil risk insurance. Are specific insurance because all other branches of insurance in the areas of engineering, assets, civil liability etc. Exclude coverage for any offshore and onshore operations.

The hiring and delivery to the customer of a "common" insurance can jeopardize the contract and also the business relationship, especially if an accident occurs and the insurer can not cover the losses. On March 15, 2001, the P-36 insurance that exploded was US $496 million. At the time, according to Petrobras, most of this value – about US $325 million, was destined for the early and full discharge of contracted leasing. The agreement was also signed by a consortium of international reinsurers, holders of 99.02% of the risk, and by the group of national insurers led by Bradesco Seguros and the Institute of Reinsurance of Brazil – IRB.

Therefore, petroleum risk insurance applies to buildings, supplies, assemblies and upstream services (it is a term used in the petroleum industry which means the part of the production chain that precedes refining, thus covering the Exploration, development, production and transportation activities for beneficiation), onshore (prospecting on land) and offshore (prospecting in high seas, large depths, case of pre-salt).

These activities linked to the prospecting, exploration, production, transportation and storage of oil and gas, both in the sea and on land, need compensation for damage to the work itself, to the equipment or to the object of the provision of services (physical damage) and also to Third parties (civil liability), whether bodily, material or moral arising from such operations.

ON-SHORE/OFF-SHORE Insurance – a specific insurance for companies operating in the exploration, drilling and production of oil or gas in the onshore and offshore modalities must make coverage that refer to:

1) Material damage to platforms, ships, probes and their equipment, arising from their operations.

2) Civil liability for damages caused to third parties, arising from these activities.

3) Damage arising from the construction, repairs or maintenance of platforms, ships or probes.

Vessels – The insurance must "protect" the vessel from accidents during the stages of construction, operation, repair, dismount or shutdown, while considering that these events may also involve people, inside or outside the vessel.

Other risks covered by insurance are for coverage of the collision, Arrivation, sweeping, riot on board, negligence and sea fortune (including fortuitous or force majeure cases such as storms, strandings, rays, tidal waves, fires and explosions).

They may also have safe vessels with commercial activities of open sea navigation (long haul, cabotage or maritime support), interior or port support that provide cargo services, passenger; Tuplers/pushers; Fishing and other commercial activities. There are also sports and recreational vessels.

The basic cover options of the hulls insurance, shipyards and ports are about total loss, gross breakdown, assistance and rescue, liability of the Shiker and particular breakdown, and the special covers promote disbursement, Surplus liabilities, increased value, naval builder, complementary civil liability (Protection and indemnity), war and strikes.

So, stay on the inside of what happens in the oil and gas market through Panorama Offshore and get quality information and news about oil, gas, energies, pre-salt, biofuels, fuels, technologies, Petrobras and offshore and onshore. Remember: your business. Check out: www.panoramaoffshore.com.br/www.facebook.com/panoramaoffshore/@panoramaoffshore

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