Onshore Refinery Risks Exclusion and Oil & Gas (O & G) Risks Exclusion within Treaty Reinsurance contracts
I dislike it when reinsurers start to take off some of those usual fringe benefits that they used to generously allowed for the benefits of the Malaysian non-life insurance industry in regard to Oil & Gas related activities. It was alright as Malaysia is a net oil & gas producing county…. Fringe benefits like providing some basic coverages to sub-contract related works or activities done within the confines or boundaries of any oil & gas platform or refinery setup and parameters or even exploration environment on the pretext that these works or activities are simple and not being the core part of the O & G.
What exact did those guys took it off this time around? Perhaps you can check out the standard stuff that have been applied by Malaysian Re, the local home grown hero….
|Notwithstanding anything contained in this Contract to the contrary, all claims which arise from onshore refineries, petrochemical plants and any installations within their boundaries, even while under repair, maintenance, extension or modification, after the initial handing over to the operators, are excluded. This exclusion shall not apply to any insurance or reinsurance in respect of the construction, erection or installation of buildings, plant or other property (including contractors’ plant and equipment used in connection therewith) prior to the initial handing over of such refineries, petrochemical plants to the operators.
For the purposes of this clause, jetties, wharves, berths, piers and docks shall be deemed to be outside the boundaries mentioned above. However, no cover for liabilities arising from the operations of jetties, wharves, berths, piers and docks in respect of onshore refineries, petrochemical plants and any installations within their boundaries shall be afforded hereunder.
Nevertheless claims (other than those liabilities in respect of onshore refineries, petrochemical plants and any installations within their boundaries even while under repair, maintenance, extension or modification after the initial handing over to the operators) arising from the following shall not be excluded by this clause:
a) facilities for the processing, treatment or separation of gas provided that they are outside the boundaries of the onshore refineries, petrochemical plants;
b) any field processing.
Oil and gas risks involving offshore exploration, upstream and downstream activities including but not limited to refineries, petrochemical plants and product terminals, i.e. storage facilities at fixed locations used exclusively for the storage of crude oil, natural gas or petroleum products.
This exclusion does not apply to any business that is indirectly involved in the storage of crude oil, natural gas and petroleum products i.e. plants, vehicles, petrol stations and/ or any storage facilities that stores crude oil, natural gas or petroleum products at their facilities.
|All aspects connected to the O & G platform and rigs are excluded however, sub-contractors carrying out supplying & delivery works, renovations, maintenance works and repairs not connected to drilling and/or refining of liquid or gas fuel or oil is covered.|
Energies Behind The O & G Explosion
Let’s see what we mean….
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