Decarbonisation of carbon intensive companiesClimate changeDecarbonisation
The mining and energy industries in particular have a large number of assets that are at, or close to, their end of life. Alternatively, an asset may be in a value chain that is dependent on a late life asset and if that late life asset were to be shut down, then the dependent asset would become stranded.
Marsh has developed a range of products to reduce the uncertainty associated with managing and decommissioning late life assets. The insurance programmes provide for a range of outcomes from allowing an alternative replacement scheme
if a late life asset is damaged through to providing for liabilities that may arise from the process of decommissioning itself.
As the world transitions to a net-zero economy many assets in oil and gas or hard-to-abate sectors will be decommissioned. These insurance programmes can provide coverage to remedy harm caused during late life operations or in the course of decommissioning.
A client in the energy sector was operating a large late life oil platform that was due for decommissioning. The operator planned to decommission the wells and surrounding infrastructure from platform itself. If the platform suffered damage, then the planned decommissioning scheme could not have been completed as planned and would have increased both the cost and the time for the work to be completed.
Senior Vice President, Energy & Power PracticeMax.Oppenheim@marsh.com