Transcript スライド 1 - AIDA - Association Internationale de

Offshore Energy Insurance
Risks in Australia
From an underwriter’s perspective
Hiroaki Kobayashi
Melbourne Chief Representative,
Tokio Marine & Nichido Fire Insurance Co., Ltd.
General Manager – Southern Region,
Tokio Marine Management (Australasia) Pty. Ltd.
Marine Insurance WP
18 September, 2013
Sydney
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Self Introduction
1993-97
2003-04
2008-10
1997 -
Graduated from Keio University – Law & Political Science
Tokio Marine sponsored Chinese Language Trainee Course at Fudan University in Shanghai
Obtained Finance MBA at Graduate School of Waseda University
Tokio Marine Fire Insurance Co., Ltd.
1997 -
Introduction to aviation insurance
2000 -
Marine Industry Production Dept
2004 -
responsible for offshore energy insurance for regions including North Sea, Vietnam, Sakhalin,
Gulf of Mexico, Azerbaijian, Australia
Tokio Marine & Nichido Fire Insurance Co., Ltd.
Shanghai Representative
in charge of Chinese territories Suzhou, Beijing, and Qingtao for all classes of insurance business
2007 -
Marine Industry Production Dept
2012 -
Melbourne Chief Representative
in charge of offshore energy insurance for regions including Australia, North Sea, Gulf of Mexico,
Sakhalin, Middle East, Egypt, Brazil.
You will be familiar with major projects such as Pluto CAR and Gorgon CAR which I underwrote.
General Manager – Southern Region, Tokio Marine Management (Australasia) Pty Ltd
Responsibility for Victoria, South Australia, Western Australia, Northern Territory and Tasmania
Management responsibility for major Japanese corporations operating in Australia such as Toyota,
Mitsubishi Motor, Mitsubishi Corporation and so on.
I am also engaged in various offshore energy projects including Ichthys, Wheatstone, Pluto,
Gorgon, Bayu-Undan and North West Shelf Project.
Specialized Interest : Offshore Energy Insurance, Environmental Law, International Law
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1. Floating LNG - Australia’s LNG Project
(1) Australia has three existing LNG projects with a total capacity of 24.3 million tonnes
per annum (mtpa).
・North West Shelf
・Bayu Undan
・Pluto
(2) Seven LNG projects are under construction in Australia, with capacity approaching
90 mtpa by the end of the decade.
・Gorgon
・Wheatstone
・QC LNG
・Gladstone LNG
・Prelude → FLNG
・AP LNG
・Ichthys
Source : Shell
(3) Other proposal projects may develop
with Floating LNG technology.
・Browse → FLNG ?
・Sunrise → FLNG
・Bonaparte → FLNG ?
・Scarborough → FLNG ?
<Hot Issue in Australia>
Source : JOGMEC
Insurance Arrangement for Floating LNG is under pressure – Limited Capacity
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1. Floating LNG
- Insurance Products for Floating LNG
Development Stage
F-LNG / SURF
Construction All Risk
① F-LNG ②Subsea
Operation Stage
Maintenance
Period
Marine Cargo
Third Party Liability
Delay-in Start-up
Operator's Extra Expense (Cost of Control)
Wells
Third Party Liability for drilling activity
Third Party Liability for site operation
Physical Damage ①F-LNG ②subsea
Business Interruption
Contractor
Third Party Liability / Protection & Indemnity
Physical Damage
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1. Floating LNG
- Offshore Energy Insurance
Market Capacity
(1)
(2)
(3)
(4)
Offshore Energy Insurance is usually placed in the international insurance market,
such as Lloyd’s or major continental underwriters.
Accepted, Specialized policy wordings are utilized in the Offshore Energy Insurance
Market with limited number of underwriters participating.
Current capacity of Energy Insurance Market is considered to be around $3.5 billion,
which is low compared with the exposures / sums insured of hull and topsides etc..
Advent of new and unproven technology has created difficulties for the underwriting
markets. Current trend is to support proven and validated technology.
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1. Floating LNG
- Offshore Energy Insurance
Layered Program
Depending on capacity required:-
3rd Excess
- Integration of Hull and Topsides etc. will
constitute the time to procure a higher
layer.
Layer
- Special Capacity from investment company
- Non-Marine (Excess of loss) / Pro-Re
- Therefore, a detailed schedule containing
the milestone dates is critical to build up a
layered program.
2nd Excess
- Captive
Layer
- Oil Insurance Limited (Mutual for oil companies)
1st Excess Layer
- Energy Insurance Market
Primary Layer
Beggining of
Construction Work
PAC
Construction Period
Hull+Tanks
Topsides
Subsea
Fablication at yard、Transportation
Integration
Tank Test
Maintenance
Peiod
FAC
Installation
Tow Commissioning
Fablication at yard、Transportation
Fablication at yard
Pipelaying、Tie-in
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1. Floating LNG
- Offshore Energy Insurance
Protection & Indemnity Insurance
Protection & Indemnity Insurance from PI Club can be obtained in order to achieve
increased capacity for Construction All Risks Insurance.
Entry into yard
Exit from Yard
Construction
★Commencement of Production
Navigation to field
Operation
★ The unit must move to Standard Offshore Rules cover at “Commencement of Production” however it is recommended that this should take place on arriving at the field
Standard Poolable P&I Cover
・crew
・pollution from the entered ship
・wreck removal of the entered ship
・collision/dock damage
・carbon/property on board
Standard Offshore Rules
・stand alone fixed premium cover
・P&I risks
・wreck removal of the unit
・pollution from the unit
・personal injury
・contractual (with prior approval of
the managers)
Offshore liabilities extension clause
・arise by reason of the member’s
interest in the unit
・property
・personal injury
・chartered ships
・pollution (subsea)
・clean-up
・sue and labour/legal costs
Source ; Standard PI
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2. Seepage & Pollution Cover after Montara
Montara Incident
Date :
Early on 21 August 2009
Location : Timor Sea some 690km west of Darwin and
250km from the Western Australian coast.
Incident:
The H1 well kicked, subsided for two hours, then
began flowing uncontrollably with a plume of gas,
condensate, water and oil venting into the air
above the rig.
The rate of discharge was initially estimated at
400 barrels a day, though it may have reached
1500 barrels. Estimates of the resulting surface
sheen ranged from 6000 – 25000 square
kilometres.
The discharge was finally stopped in Nov 2009.
Source : PTTEP
<Hot Issue in Australia>
Establishing an adequate limit of liability for Seepage & Pollution Coverage
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2. Seepage & Pollution Cover after Montara
Responsible Party and Insurance
Responsible
Party
Category
1.
Oil Pollution Liability
from wells
(1) Clean up cost
(2) Liability
(3) Cost of control
2. Oil Pollution Liability
from Rig’s fuel
Oil Company
Operator’s Extra Expense
(1) Cost of Control
(2) Redrilling Expense
(3) Seepage & Pollution
Rig Contractor
Protection & Indemnity
(Third Party Liability)
Rig Contractor
Hull & Machinery
Employer
Worker’s Compensation
Oil Company
Contractor
No Insurance
Source : PTTEP
3. Damage to the Rig
(1) Rig itself
(2) Sue & Labour
(3) Wreck of Removal
Insurance
http://www.nopsema.gov.au/
4. Death / Injury of
workers on board
Injury free offshore evacuation of all
69 personnel onboard the drilling rig
5. Fines / Penalties / Punitive Damage
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2. Seepage & Pollution Cover after Montara
Limit of Liability
(1)
(2)
(3)
It is difficult to determine the exact exposure from a blowout incident to an
environmental pollution event. However, rule of thumb is that you cannot buy
enough coverage for those exposures.
Many oil companies decide limit of liability considering OPOL limit or OPA limit or
OIL limit.
Following is example how to proceed with a Blowout Risk Analysis.
① Blowout Risk Screening
② Blowout Risk Analysis
Source ; DNV
OPOL : Offshore Pollution Liability Agreement
OPA : Oil Pollution Act of 1990
OIL : Oil Insurance Limited
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Thank you for attention!
TMNF at a Glance
Established in 1879, the first P&C Insurance
Company in Japan
Net Premiums written
JPY1,869bn (Approx USD20bn)
Total Assets
JPY9,708bn (Approx USD90bn)
Number of Employees
17,284
Highest Ratings in Japanese market
S&P
: AA-
Moody's
: Aa3
AM Best
: A++
Fitch
: AA-
Hiroaki Kobayashi
Melbourne Chief Representative,
Tokio Marine & Nichido Fire Insurance Co., Ltd.
General Manager – Southern Region,
Tokio Marine Management (Australasia) Pty. Ltd.
<Address>
Tokio Marine Management (Australasia)
Level 13, North Tower,
459 Collins Street,
Mobile : +61 (0)459 257 740
Melbourne, VIC 3000
E-Mail : [email protected]
AUSTRALIA
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