Sompo Canopius AG has launched a drilling well sidetrack (DWST) product, which it said would meet the specific needs of upstream energy clients.
DWST would provide cover for a range of critical well scenarios that are not covered under standard well-control policies. The main focus would be mitigating the well-cost escalation that occurs if a sidetrack was needed for a well to be drilled to its target bottom hole due to an unforeseen event.
It said that the aim of DWST was to provide risk transfer for unbudgeted expenses that might result from a range of unforeseen circumstances.
Steve Warren, Group Head of Energy & Engineering said: “With the engineering expertise of Francis Lobo, Head of Upstream Oil & Gas Engineering, we have created a specific, clearly worded product that provides security and clarity of cover. DWST helps to increase certainty in our clients’ financial planning and ensure the robustness of well and project economics. We are hugely encouraged by the interest that is already being shown by clients and brokers, and very pleased that we can work in partnership to help them manage their risk in this way.”