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Energy Risks Insurance

The most catastrophic risk that any field development operator is exposed to is the risk of losing control over the well, i.e. а blowout.

Considering the above fact, whilst carrying out a drilling operations, it is advisable to purchase a comprehensive insurance program that will include a coverage for drilling rigs/equipment, coverage for operator’s extra expenses and third party liability insurance in connection with operation/development of a well.


  • The subject-matter of insurance for this type of coverage is the property interests associated with:

    • Drilling (construction), development, technical and / or major workover of wells;
    • Ownership, use, disposal of equipment for drilling (construction), operation and maintenance or major workover of wells;
    • Liability of the Insured to compensate damages done to an environment as a result of loss of control over a well.

  • The coverage is provided as a result of the followings:

    • Loss of control over the well;
    • Redrilling expenses;
    • Pollution and clean up costs arising out of a control of well event.

Insurance coverage is based on worldwide used Energy Exploration and Development Insurance EED 8/86 wording.

The insurance coverage is mainly provided for 12 months.

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