Bombay High gets NIC cover for Rs 1,746 cr
Kolkata-based National Insurance Company (NIC) has offered a Rs 1,746-crore construction cover for insuring ONGC’s current offshore platform project at Bombay High.
By Debjoy Sengupta, TNN |
KOLKATA: Kolkata-based National Insurance Company (NIC) has offered a Rs 1,746-crore construction cover for insuring ONGC���s current offshore platform project at Bombay High.
NIC sold the cover to Abu Dhabi-based National Petroleum Construction Co (NPCC), which is executing the project for development of a C-Series field in Bombay High for ONGC. The public sector insurer has offered a sum assured of Rs 1,746 crore for the entire project, which is the same as the project cost. This has generated a modest Rs 30-crore premium income for NIC.
���The project is scheduled for completion in 36 months and the cover will be valid for the entire period of construction. The insurance offered by NIC will cover movement of material and equipment for the platform to the construction site,��� DK Burman, director and general manager at NIC, told ET.
The project involves survey, design and detailed engineering, procurement, fabrication, installation and commissioning of four unmanned well platforms at Mumbai High. ���About 50% of the platform will be constructed on shore and will be moved and installed at the site which is on the high seas, 200 nautical miles from the shore. The remaining construction will be done on site. The cover will shield NPCC against any damage to the platform while under construction until it is handed over to ONGC,��� said a senior NIC official.
���It will also cover instances of flood, fire or any unforeseen circumstances,��� he said. ���NIC has bagged the cover after intense negotiations with UK-based Marsh Company Insurance Brokers which acted as NPCC���s broker for this projects,��� he said.
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Interestingly, NIC has recently sold a policy for covering ONGC���s Rs 26,000-crore onshore assets. This was for the first time that ONGC had opted for a comprehensive policy covering all its onshore assets under a single mega-cover. At a premium of Rs 18 crore, ONGC will have its onshore assets, including 225 production installations, two major terminals, and about 75 drilling rigs insured for a sum assured figure of Rs 26,000 crore.Download
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