Onshore energy report calls for improved risk surveys

26th September 2016

Enaie Azambuja

0 0

A report published by the LMA highlights the key trends in causes of major losses in the onshore oil, gas and petrochemical industries. Launched this week at an event in the Lloyd’s Old Library attended by over 160 market practitioners, the report calls for a renewed focus to improve risk engineering surveys to help reduce the risk of major losses. 100 major losses over a 20 year period were identified and split into two categories: ‘mechanical integrity failure’ (43% of losses) and ‘non-mechanical integrity failure’ (57% of losses).

The report recommends closer examination of a number of key areas relating to major losses when undertaking risk engineering surveys. These include: efficacy of inspection programmes (including material verification); operating procedures (particularly during infrequent or abnormal operations); quality of process hazard analysis reviews; safe isolation of equipment; and the availability of safety-critical devices.

LMA’s Patrick Davison, Senior Executive, Underwriting said “The purpose of the analysis is to guide insurance risk engineers to shape and prioritise their risk surveys to focus on the common causes of losses".

"This guidance builds upon current LMA documents for risk engineers, which will be updated accordingly. We encourage risk engineers to consider the full recommendations in the report to ensure the energy industry is better protected from future major losses.”

An Analysis of Common Causes of Major Losses in the Onshore Oil, Gas & Petrochemical Industries is available to download from the LMA website: www.lmalloyds.com/energyreport.