ExxonMobil Guyana Limited (EMGL) is moving to put insurance arrangements in place for the Longtail development, Guyana’s first offshore project focused on non-associated gas.
The company has issued a Request for Information (RFI) to identify suppliers capable of providing insurance brokerage services for the Longtail Development Insurance Program.
The scope includes brokerage support for a Construction All Risk (CAR) program covering property damage, operator’s extra expense, and general third-party liability.
The property damage (PD) coverage is expected to apply to subsea, umbilical, riser, and flowline-related asset exposures and activities on a worldwide basis.
Operator’s extra expense (OEE) coverage would include control of well, redrilling and extra expenses, seepage and pollution, clean-up, and contamination exposures.
The general third-party liability (TPL) coverage would include sudden and unforeseen pollution. It would cover liabilities arising from Longtail development exposures on a worldwide basis.
According to the RFI, “It is expected the PD, OEE and TPL coverages will cover three distinct coverage periods and additionally Maintenance Period (12 months), and Discovery Period (12 months), all subject to the terms, conditions and exclusions to be agreed as part of the coverage.”
EMGL said the intended award would be effective for the duration of the program.
The company said insurance must be procured from an insurance company, or companies, with long-term unsecured obligations rated at least “A-” by Standard & Poor’s, “A3” by Moody’s Investor’s Service, or “A-” by AM Best.
EMGL also said it has the option to use a local insurance company for the Longtail placement. If that option is implemented, the broker would be responsible for placing a reinsurance program.
The procurement move comes as ExxonMobil advances plans for Longtail, the eighth development offshore Guyana in the Stabroek Block.
Longtail is expected to target gas production of up to 1.2 billion cubic feet per day and condensate production of about 250,000 barrels per day.
Government approval and a final investment decision are expected later this year. ExxonMobil plans to start production from Longtail in 2030.
