Sompo reveals details of restructure
Sompo Canopius, which has an office on Bermuda, has launched a new drilling well sidetrack (DWST) product.
The company claims that the new product is unique in that it responds to the specific needs of upstream energy clients.
According to Sompo Canopius, DWST provides cover for a range of potentially very expensive critical well scenarios that are not covered under standard well control policies. The main focus is mitigating well cost escalation that occurs if a sidetrack is needed for a well to be drilled to its target bottom hole due to an unforeseen event.
The company said that the product has already seen significant initial interest from the oil and gas industry, which is dealing with ongoing challenging commodity prices. The sector is therefore keenly focused on the economics of some exploratory drilling prospects, which are commercially high risk in any case. In such difficult conditions, a cost overrun becomes even more punitive and the aim of DWST is to provide risk transfer for unbudgeted expenses that might result from a range of unforeseen circumstances.
“With the engineering expertise of Francis Lobo, head of upstream oil & gas engineering, we have created a specific, clearly worded product that provides security and clarity of cover,” said Steve Warren, group head of energy & engineering. “DWST helps to increase certainty in our clients’ financial planning and ensure the robustness of well and project economics. We are hugely encouraged by the interest that is already being shown by clients and brokers, and very pleased that we can work in partnership to help them manage their risk in this way.”
Sompo Canopius, Drilling policy, Energy, Insurance, Global