Control of Well Insurance Review

Joint Rig Committee Propose Changes to Policy Wording

London April 2021

London underwriting body the Joint Rig Committee has recently released a number of proposed changes to insurers' standard Control of Well policy wording the Energy Exploration & Development policy form EED 8/86. For example, the Joint Rig Committee propose making the policy Due Diligence Clause a “condition precedent”.

However, the main body of the revised policy form retains terminology that indicates that the Due Diligence Clause shall act as an exclusion with the consequences of a breach being restricted to claims caused by the breach.

Accordingly, the proposed introduction of the reference to a “condition precedent” would appear to provide underwriters with grounds to contend that the onus of proof has been reversed in respect of the Due Diligence Clause.

No doubt oil & gas companies, drilling contractors and other interested parties will consult with their advisers for guidance on the full set of proposed changes in advance of the Joint Rig Committee’s consultation deadline of 11th May 2021.

About Trident Oil & Gas Claims Consultants Limited: Trident specialise in providing insurance coverage advice to policyholders from within the oil & gas industry. In particular, Trident offer advice and representation during the preparation, negotiation and settlement of insurance claims. Trident’s experience encompasses exploration, construction and operational risks. www.tridentclaims.co.uk