GOGIP Protocol Implementation: Challenges and Prospects - An Overview
The presentation delves into the four years of implementing the Protocol on Oil and Gas Insurance Placement (GOGIP) in Ghana. It discusses the challenges faced, prospects for the future, objectives of GOGIP, major operations, companies involved, assets insured, and market performance over the years.
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Presentation Transcript
Four Years of Implementation of Protocol on Oil and Gas Insurance Placement: Challenges and Prospects Emmanuel Wadie BSc. (Admin), ACII (UK) Senior Energy Underwriter November 2018
GENERAL OVERVIEW GOGIP and operations Challenges with Protocol implementation Prospects for the next 5 years Questions
GOGIP Established in 2010 to allow insurers in Ghana write larger risk The exclusive body authorised to provide insurance for assets and liabilities directly relating to upstream Oil and Gas Mandated by: Insurance Act 2006, (Act 724) Petroleum Local Content and Local Participation Regulation, 2013, (L.I. 2204) Protocol for the Placement of Upstream Oil and Gas Insurance Risks, 2014 Pool Managers: 2010 to Sept 2016: SIC Insurance October 2016 to Present: Enterprise Insurance Represents all licensed general insurance and reinsurance companies in Ghana with present membership: 22 insurance and reinsurance companies
Objectives Reduce foreign exchange outflow by building in-country insurance capacity Ensure oil companies within Ghana are charged competitive premium rates that will enhance profitability and stabilize insurance market Develop manpower capacity and technical expertise in the insurance of oil and gas related risks
Assets insured by GOGIP 3 FPSOs on three producing fields 4 drillships 15 Offshore support vessels Over 70 wells offshore Ghana Subsea assets including wellheads, umbicals, risers, etc . Total insured valued is circa USD 20 billion
GOGIP Insurance Premium 50 49.3 47.9 40 Premium (USD millions) 30 Gross Premium Net Premium 26.9 22.5 20 10 1.6 0.53 0.63 0.86 0 2014 2015 2016 2017
Offshore Claims 700 600 628 500 Claim (USD millions) 400 Gross Claim Net Claim 300 200 100 0 0 26 1.3 6 0 0 0 2014 2015 2016 2017
Challenges Use of offshore insurance in Ghana contrary to the Protocol Lack of awareness of the existence of the Protocol Lack of confidence in the local market Direct insurers underwriting some upstream risks reserved for GOGIP Activities of Joint monitoring team for compliance is yet underway
Prospects 5 year strategic plan to retain 20% of upstream insurance premiums in Ghana by 2023. Increasing retention capacity from the current USD 14 million to USD 50 million backed by A Rated Lloyds Syndicates from 2019 NIC reviewing guidelines to enable direct insurance companies to participate in oil & gas insurance risks from 2019. GOGIP will continue to develop technical capacity for the industry. Early engagement at exploration stage to ensure smooth placement of insurance through the local market, building stronger relationships with operators, contractors Stricter monitoring of compliance by regulators (NIC & PC). GOGIP to support this move. Regular interactions with key stakeholders through workshops and seminars for sensitisation and education
Thank you Emmanuel Wadie, BSc. Admin, ACII (UK) Senior Energy Underwriter info @gogip.org
