chris dear

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RISK TRANSFERCASE STUDY

Chris Dear

Justin BlackmoreMike Newsom Davis

Joe Hassett

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It was another busy day in the Willis

Energy London office when.

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Hi Chris,

Do you remember me? I attended your Master of Energy

training course a few years ago and guess what, I am now CEO

of a new Oil and Gas company based in Hong Kong called New

Asia Oil Co

We have just purchased some assets and have big plans to

expand. Can you please have a look at our portfolio and suggest

how we can best place an Insurance Programme.

Thanks very muchBest regards

Chin

..AN UNEXPECTED E-MAIL ARRIVED

8/9/2019 Chris Dear

4/22

Schedule of assets

A refinery valued USD1.5bn in Vietnam

A gas processing plant in Thailand valued USD700m

A 20% share in 22 offshore platforms in the Gulf of Thailand

- total value for interest USD150m

Total net producing footage offshore Thailand 160,000 feet

Plans to drill two exploratory wells offshore Australia

NEW ASIA OIL Co.

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SO WE HAVE A DOWNSTREAM AND

UPSTREAM ACCOUNT

We need to have a brainstorming session, call for the

A Team.

Justin BlackmoreDownstream

Mike Newsome-DavisLiability

AND

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H RD WORKING REGION L DIRECTOR

JOE HASSETT

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1. Programme Design

How are we to create a programme that gives the widest cover for the

best available terms and conditions?

2. Marketing Strategy

Which insurers are we going to approach to give us the best deal?

These two items are linked and need to be considered together

TWO PRIORITIES

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PROGR MME DESIGN

Four areas of coverage to consider:

Downstream

Physical

Damage

Upstream

PhysicalDamage

Upstream

Control

of

Well (COW)

Upstream

And

Downstream

Liabilities

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PROGR MME DESIGN FOUR OPTIONS

Option Oneplace four separate policies in specialist markets

Downstream

Physical

Damage

UpstreamPhysical

Damage

Upstream

Control

of

Well (COW)

Upstream

And

Downstream

Liabilities

1

4

32

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Option Two - Place three separate policies

- Bundle Upstream PD and COW

Downstream

Physical

Damage

UpstreamPhysical

Damage

Upstream

Control

of

Well (COW)

Upstream

And

Downstream

Liabilities

1

3

2

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Option Three - Place three separate policies

- Package all Upstream

Downstream

Physical

Damage

Upstream

Physical

Damage

Upstream

Control

of

Well (COW)

Downstr

Liabs

1

3

2

Upstr

Liabs

Upstream Package

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Option FourPlace one composite policy

(one policy five sections)

Downstream

Physical

Damage

UpstreamPhysical

Damage

UpstreamControl

of

Well (COW)

Downstr

Liabs

Section.1

Upstr

Liabs

Section.2

Sect.3 Section.4

Section.5

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PROGR MME DESIGN

What is the best option, or options, for New Asia?

Vote:

1. Option One- place four separate policies in specialist markets

2. Option Two - place three separate policies, bundle Upstream PDand COW

3. Option Three - place three separate policies, package all

Upstream

4. Option Four - place one composite policy (one policy five

sections)

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M RKETING STR TEGY

Which markets to approach?

1. Regional Markets, i.e. markets located in Asia (Singapore, HongKong, China, Japan etc)

2. European Markets

3. London Markets

Questions:

Does market appetite vary depending on the class of business

i.e. Upstream, Downstream, Liability?

How much regional capacity is genuine additional capacity?

Global companies with regional focus

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M RKETING STR TEGY

Vote

What is going to be the best market for New Asia Oil

Co?

1. Regional

2. European

3. London

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PROGR MME ND M RKETING

STR TEGY OUTCOME

Our plan is to try for an integrated package with

regional markets

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NEWS FLASHNEWS FLASH

NEWS FLASH

New Asia Oil Co announce the

purchase of a new refinery inArgentina.

The purchase price is USD2bn.

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STR TEGY UPD TE

Does this new information change our strategies?

Greater downstream emphasis, does our proposed market have

sufficient capacity?

Do we need to review the liability limit?

Is this still regional business?

Where do we access the markets?

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NEWS FLASHNEWS FLASH

NEWS FLASH

New Asia Oil Co announce the

purchase of a 20% interest in theSKARV field offshore Norway.

The asset value is USD2bn (100%)or USD400m for interest.

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STR TEGY UPD TE

Does this new information change our strategies?

Greater upstream emphasis, does our proposed market have

sufficient capacity?

Do we need to review the liability limit?

Is this still regional business?

Where do we access the markets?

Is New Asia now a Global Account?

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M RKETING STR TEGY

Vote

What is going to be the best market for New Asia

Oil Co?

1. Regional

2. European

3. London

8/9/2019 Chris Dear

22/22

Is the Insurance

Market Fit for

Purpose?

chris dear

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