US insurer Marsh and the Cairo-based Arab Anglo Insurance Brokers (AAIB) have launched a new Iraq land rig insurance facility to meet the requirements of drilling contractors operating in the country.
The facility provides cover for physical loss of or physical damage to drilling rigs and associated equipment, machinery breakdown and third party liability risks.
“Entirely flexible, the facility can be tailored to meet the specifications of one-shot well exploratory drillers, through to larger contractors conducting significant drilling operations across Iraq,” says a statement released by the two companies.
In addition to insurance cover, the two firms will also provide claims support through loss adjusters, as well as advice on local regulatory requirements from Marsh and AAIB.
“Rig insurance is essential for drilling contractors, but the costs can often be prohibitive, especially for smaller firms seeking to branch out into emerging territories. Drilling contractors need local risk and insurance expertise to take full advantage of the opportunities that exist in Iraq,” says Simon Boxall, managing director at Marsh’s Global Energy Practice.