Willis is warning that the energy industry faces new risks associated with decommissioning and dismantling oil and gas installations.
According to the broker, in the years ahead a significant number of offshore oil and gas platforms will reach the end of their productive lives – in the North Sea alone 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,” explains Chris Dear, managing director of Willis Energy.
He adds: “As a result, energy companies face a number of significant risks, including seepage and pollution and complex contractual liabilities.”
In response, Willis has launched an Offshore Dismantling & Removal Insurance Facility in partnership with a group of marine and energy insurers.
The policy is designed to address specific decommissioning risks, including contractual liability exposures.
It also covers seepage, pollution and contamination risks, with standard removal of wreck cover extended to address the heavy lifting risks unique to decommissioning projects.