The Ghana Oil and Gas Insurance Pool (GOGIP) has started a three-day energy insurance training programme today, under the theme ‘Reliable Upstream & Offshore Energy Insurance Training’, at the Golden Tulip Hotel, Accra. 50 delegates made up of insurance and reinsurance companies, insurance brokers, independent oil companies and regulatory bodies in insurance, upstream petroleum and maritime sectors are participating.
The training is being facilitated by Mr. David Ward Sharp, who has 50 years’ experience working within the energy insurance market in the UK. Mr. Sharp spent 20 years with Marsh Marine and Energy, with the last 5 years as Managing Director with particular responsibility for global offshore construction. He is a specialist in all areas of Well Control Insurance, Offshore Construction Packages, Marine Hull and Machinery, and Protection and Indemnity Insurance. He is also the author of the book ‘Upstream and offshore Energy Insurance’, which is regarded as the standard reference material in energy insurance.
The Pool was established in 2010 and saw all insurance and reinsurance companies in the country pull their financial resources together to underwrite the huge values of assets used in exploration and production offshore. Since its formation, the Pool has underwritten the construction policies of all three FPSOs: namely the Kwame Nkrumah, John Evans Atta-Mills and John Agyekum Kufour, and currently insures these assets under their respective Hull & Machinery policies.
A keen concern when the Pool was formed was to ensure that the Insurance Industry develops the needed manpower capacity and technical expertise in insuring oil and gas related risks, through systematic manpower development. It is also to provide technical support and advice to insurance companies operating in the country on matters relating to risk management and insurance of oil and gas-related risks.
According to Mr. Kwabena Larbi, Head of Technical of GOGIP, the Pool is of the firm belief that with increasing oil and gas production in the 3 production fields of Jubilee, T.E.N. and Sankofa – coupled with the recent International Tribunal Law of Sea (ITLOS) ruling in favour of Ghana in the maritime border dispute – there is going to be increased exploration activities offshore.
“Also, the recent announcement of Exxon Mobil acquiring a block in the offshore Cape Three Points (OCTP) Basin, and news reports of Aker Energy taking over the HESS block and seeking to pour first oil in 2021, bring so much excitement to our industry – but also caution, as there is an urgent need to ramp-up industry knowledge of underwriting these complex risks so that insurance companies are well-informed in their underwriting decisions.”
The Ghana Oil and Gas Insurance Pool (GOGIP) is the exclusive vehicle required to provide insurance for assets and liabilities in respect of all activities and/or operations directly relating to the exploration, appraisal, production, storage and transportation of Crude Oil and Gas in Ghana, in accordance with the Insurance Act 2006, (Act 724) and the Petroleum (Local Content and Local Participation) Regulation, 2013, (L.I. 2204). The Pool is a representative of licenced general insurance and reinsurance companies in Ghana, with a current membership of 22 companies.