Sompo Canopius has launched a new drilling well sidetrack (DWST) product that responds to the specific needs of upstream energy clients, providing cover for a range of critical well scenarios that are typically not covered under standard well control policies.
The DWST cover will mitigate well cost escalation that occurs if a sidetrack is needed for a well to be drilled to its target bottom hole due to an unforeseen event.
Steve Warren, Group Head of Energy & Engineering said; “With the engineering expertise of Francis Lobo, head of upstream oil & gas engineering, we have created a specific, clearly worded product that provides security and clarity of cover.
“DWST helps to increase certainty in our clients’ financial planning and ensure the robustness of well and project economics. We are hugely encouraged by the interest that is already being shown by clients and brokers, and very pleased that we can work in partnership to help them manage their risk in this way.”
Canopius said the product has already seen significant initial interest from the oil and gas industry, which is dealing with ongoing challenging commodity prices.
