Control of Well Insurance
Well control is the technique used in oil and gas operations such as drilling, well workover, and well completions to maintaining the fluid column hydrostatic pressure and formation pressure to prevent influx of formation fluids into the wellbore. As long as there are drilling operations there will always be potential well control problems. Most well control problems are the result of human errors and or equipment failures which can be eliminated, although some are unavoidable. Since we know the consequences of a well out of control are severe, efforts should be made to prevent the root causes of these incidents.
These causes include:
- Lack of knowledge and experience of rig personnel
- Lack of well control data in the area
- Improper work practices
- Lack of well control training
- Lack of application of policies, procedures, and standards
- Inadequate risk management
- Defective, improperly installed or inadequate equipment
- Re-drilling Expense (covers the expense incurred in the restoring or the re-drilling of a well after a blowout to the original depth and comparable condition prior to the loss.)
- Cost and expenses incurred for cleanup and surface remediation expenses following a well out of control.
- Legal and/or contractual liability for pollution damages to third parties resulting from a well out of control including defense expenses.
- Cost to control an underground blowout including resulting restoration and redrilling expenses
- Sudden and Accidental Seepage and Pollution
- Evacuation Expense
- Deliberate Well Firing
- Care Custody and Control (loss of in-hole equipment due to well out of control or all-risk damage to surface equipment for which you are contractually or legally liable)
Swingle Collins energy specialty group understands the potential risks endemic in oil & gas operations and has collected a team of experts, agents and service personnel to provide the best potential solution to risk mitigation and recovery. Over 35 years of serving this specialize sector has afforded us a great reputation in partnering with our energy clients.
Swingle, Collins & Associates specializes in control of well insurance coverage The descriptions of coverages listed on this website are brief and subject to the provisions, limitations, and exclusions that can only be expressed in your policy and related endorsements. For additional information of how Swingle, Collins & Associates can assist in meeting you coverage needs for: control of well insurance, oil and gas lease insurance, master service agreements please contact your dedicated risk manager to discuss the benefits and services of energy insurance coverage.
The information contained on this page is provided for informational and educational purposes only. It contains general information on insurance issues and may not reflect the most current developments in insurance coverage and is unlikely to apply in all factual scenarios. The information does not include all the terms, coverages, exclusions, limitations or conditions that may be contained in the actual insurance contract language. The policies themselves must be read for those details. Sample policy forms will be made available upon reasonable request.