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Upstream Energy

The global demand for hydrocarbons continues and producers have responded by adding new areas of offshore exploration and production to their existing portfolios in more mature regions.

Increasing geographic diversity brings with it fresh challenges; new infrastructures and technologies are under constant development to satisfy more demanding environmental conditions, while old technologies are being upgraded or replaced in the incessant pursuit of operating and capital efficiency.

National and international energy companies, both large and small, continue to invest substantial capital sums in offshore projects with the rate of investment showing little signs of abating.

Project and risk managers must be able to call on expert risk modeling, professional deal facilitation, and claims management skills to manage risk effectively. Marsh offers a uniquely holistic approach to the management of offshore and upstream risks and exposures.

The upstream sector includes oilfield service companies, whether involved in seismic activities, drilling or well workover operations, manufacturing and servicing, or design and fabrication of onshore and offshore exploration and production facilities. Each of these companies are subject to a variety of risks including injury to its personnel and damage to its property, political risks, environmental liabilities, and contractual risk.

Complete Service

Whether the risk relates to exploration, construction, producing, or decommissioning exposures, our expertise is on hand to provide insight and solutions.

Our approach is centered on the following critical building blocks:

  • Comprehensive assessment of risk exposures utilizing our team of petrochemical engineers
  • The identification, mapping, and advice on transfer of the risk
  • Cost-effective program design, including ‘cost of risk’ and retention analysis, innovative risk financing alternatives, and advice on coverage
  • Advice on “captive” insurance strategies, including feasibility studies, as required
  • First-class negotiation, marketing, and placement skills, utilizing secure and experienced underwriters
  • Our deal-making capabilities reflect our position as the largest generator of energy business to the global insurance marketplace
  • Application of sophisticated loss prevention and risk control services, including those relating to environmental liabilities
  • Provision of expert advice on all aspects of claims handling, from the establishment of pre-loss claims procedures through to post-loss recoveries

Covering Every Type and Size of Operation

  • Exploration risks, including mobile drilling units and drilling operations
  • Construction and installation risks including initial risk assessment
  • Operating risks including sub-sea installations and pipelines, fixed, floating or tethered platforms, and including process, separation, and transmission risks
  • Platform decommissioning, including residual value and credit risk solutions
  • The ability to cover multi-product risks, e.g. power generation and chemicals
  • Private, corporate, or national companies

For Every Technical Discipline

The quality and breadth of our expertise, combined with our global presence and strong insurance market relationships, enable us to deliver comprehensive, competitively-priced solutions to our clients. Our team of risk engineers can help to optimize limit and cover requirements. This acts as a powerful tool to maximize cost efficiency in risk transfer.

Our engineers have extensive experience in the evaluation of risks, of all sizes and description and n providing technical support in the marketing and placement.

We have proven expertise in the following areas:

Property physical damage including removal of wreck/debris and sue/labour

Business interruption, including estimation of contingent risk and maximum loss scenarios

  • Operators extra expense, including control of well, redrill, and seepage and pollution
  • General third party liabilities
  • Directors and officers liabilities
  • Employee practices liabilities
  • Credit and political risks, including governmental confiscation, expropriation, and nationalization
  • Cost of risk analysis, allowing for the selection of optimum risk retention/transfer strategies

Control and Loss Prevention

Identification, management, and reduction of exposure risk are a primary consideration for most participants in the energy industry, however large or small. The availability of qualified loss control services and demonstration of a commitment to safety and loss prevention, can make a critical difference as to how underwriters respond to a risk. It can assist clients in the development of their own risk management philosophies.

Our engineers assist in every aspect of hazard control and loss prevention. In addition to traditional life safety and fire protection, our services include:

  • Hazard and operability studies
  • Offshore platform audits
  • Business interruption and interdependency studies
  • Catastrophic risk assessments
  • Specialist environmental consultancy to assist in evaluating air, water, noise, radiation, and other pollution problems