National consortium pays insurance claims of three oil, gas contractors
Monday, March 4 2013 - 02:13 AM WIB
A consortium of national insurance companies paid a combined insurance claims of US$50.04 million to three oil and gas contractors operating in the country.
A ceremony to symbolically make the payment was held on Monday attended by Chairman of the upstream authority SKK Migas, Rudi Rubiandini.
The three oil and gas contractors which received the insurance claim payment are Conocophillips worth $34.02 million to cover losses after its CALM Buoy sank in the South Natuna Seas on October 2010; Pertamina EP-UBEP Ramba worth $608,842 after its Rig-03 facility was razed by fire on December 2, 2010; and Pertamina Hulu Energi West Madura Offshore (PHE WMO) worth $15.41 million for claim following a collision incident that happened to its Platform KE-40 in August 2010.
Rudi Rubiandini said that insurance claims payment marked the rising role of national insurance companies in covering the insurance of upstream oil and gas activities in the country.
The national insurance consortium, or also known as the Insurance Consortium for Wells and Industry Assets, was set up by BPMIGAS, the then upstream oil and gas regulator, 10 years ago to provide insurance coverage for oil and gas activities in the country. Initially only consisting of four insurance companies including the lead of the consortium, it now consists of 10 member companies, with insurance coverage value now totaling $31.86 billion as of end of 2012, compared to $15.14 billion in 2003.
Editing by Reiner Simanjuntak