Luke-Butler

Luke Butler from All Risks, Ltd. speaks with WRIN.tv during the 2015 IRMI Energy Risk and Insurance Conference about the risk of loss to contractors from expensive drilling equipment.

There are different types of Bottom Hole Assembly (BHA) used to give contractors both measurement and logging information.  They provide real-time data on the performance of the drill, where it is located and how far away it is from its target.

The equipment used in drilling is very expensive and represents a significant risk to contractors. When these tools get stuck down a drill hole, it is called “Lost in Hole” (LIH).  There are a few options for risk transfer to protect against losses from LIH, according to Mr. Butler. The tool company may offer coverage for 50% of a tool LIH. Other products and companies can offer additional coverage up to 40% of additional insurance. Together, operator can buy coverage for up to 90% of the cost of the tool, should it get stuck in a well.

For more from the IRMI Energy Risk and Insurance Conference, visit the IRMI website, or the WRIN.tv On Demand Library

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