IMCA's Contracts & Insurance Seminar
IMCA's 2016 Contracts & Insurance Seminar, being held in London at No. 4 Hamilton Place on Wednesday 25 May, will focus on the deterioration in contracting terms in the post-Macondo and post-$100 barrel oil business environment. In particular, the seminar will consider the potential risks of unlimited liability – for pollution, damage to work and consequential losses – and their impact on the marine contracting world.
“Unlike our industry’s past response to challenging times, such as in the CRINE era twenty years ago when oil companies and contractors worked together to find better and more efficient ways of contracting, the current approach looks to be the exact opposite.
“Oil companies have the ultimate responsibility if things go badly wrong to the country in which they operate. Contractors understand their requirement for the supply chain to have ‘more skin in the game’ as it is often called, but the current course is simply not sustainable and a better formula needs to be found.
“The situation is confusing, and whenever there is a lack of clarity there will be litigation. The insurance sector is also caught up in this confusion, since the ‘knock for knock’ principle has worked extraordinarily well for many decades. Our members, quite justifiably, and regardless of size and ownership, feel hard done by, since marine contractors rarely if ever touch the oil and feel the logic of this treatment being meted out is unsound.
“We are in somewhat uncharted territory, and the IMCA Contracts & Insurance Seminar provides an opportunity for those on both side of the fence - contractors, insurers and client companies - to state, and clarify, their position. We will be launching our policy on the situation at the seminar.”
The seminar will be chaired by Nathalie Louys Chair of the IMCA Contracts & Insurance Workgroup, and General Counsel at Subsea 7, and Allen Leatt will deliver a keynote address. The afternoon will see a mix of presentations from industry experts, including leading law firms, insurance experts, operator interests, and IMCA members; and a panel session involving industry experts. The full program of speakers is currently being finalized and will be available shortly.
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