Various Insurance Valuations
Location: United Kingdom
Project value:N/A
Project description:Much of the infrastructure associated with the production of oil and gas in the North Sea, particularly the larger and older platforms, no longer require many of the facilities with which they were originally equipped. For example, operating pressures may be lower and manning levels reduced; a manned facility could be replaced by an unmanned platform. Replacement facilities could therefore be smaller and simpler and so cost less than the original design. A revaluation can mean significantly lower insurance costs
Conversely, changes in the market can, from time to time, increase replacement costs. This would particularly apply at the present to pipeline replacement costs. So as technical and commercial requirements and market conditions change replacement insurance valuations will go up and down. Operators should regularly assess replacement values so the correct number is used to ensure facilities are not under or over insured
Timing & duration: 4 months completed
Completion date: 2006
Our scope: To support the Operator of offshore and onshore infrastructure with the updating of replacement insurance evaluations.