The Control of Well / Operator's Extra Expense (OEE) programme provides exploration and production companies (domestic and multinational) the opportunity to reduce the cost of their risk while drilling in both onshore and offshore environments.
The coverage provided addresses the financial and logistical responses to a well blowout incident before it happens and the insurance covers the client for when a blowout has occured. The well control component of the policy covers the costs of bringing a well under control following a blowout. It includes expenses resulting from seepage and pollution containment, and the associated clean-up costs. The re-drill component of the policy covers the expenditure involved in re-drilling the well to its original depth. Coverage can be provided onshore and offshore, with limits from $1 million to $1 billion.
Control of Well insurance covers expenses incurred in regaining control of a well after a 'blowout', and may include:
- Re-drilling expense (covers the expense incurred in the restoring or the re-drilling of a well after a blowout to the original depth and comparable condition prior to the loss.)
- Liability to pay third party bodily injury, damage to and loss of third party property, the cost of cleanup and defense expenses as a result of a blowout.
- Sudden and accidental seepage and pollution
- Underground blowout
- Evacuation expense
- Deliberate well firing
- Care, custody and control
Control of well / OEE programmes can be insured either individually or together with material damage, business interruption and third party liabililities in a contract known as an Energy Package.