Our Energy team is called on by global insurers to act in Australia’s largest and most complex Energy and Power Gen claims. The team has a profile in CAR, EAR and ISR claims across key sectors including upstream, downstream and renewable energy.
In Australia, the policy programmes are regularly co-insured with a lead and a regional/international follow market, and often require reporting into regional/global heads of claims and/or technical lines. Our team is acknowledged as the leader in market management on major and complex Energy losses involving local and offshore stakeholders, with close relationships at senior levels in most international insurers.
The claims typically involve a range of forensic and technical issues which impact policy response and which require access to and management of technical adjusters and experts. Energy claims in Australia also have a unique profile because of the geographical spread of assets, and persistently harsh conditions in which the operate. The claims invariably deliver complex coverage and adjustment issues with a significant quantum swing.
Recent work
We are acting for a large global market of more than 20 insurers that provided the Contract Works project insurance for the construction of the onshore facilities for Inpex’s Ichthys LNG project in Darwin. In 2022, Inpex commenced proceedings in the Supreme Court of Western Australia against insurers seeking indemnity under the policy for significant costs to rectify widespread issues concerning painted and insulated steel piping and equipment.
We are acting for a large global market of insurers (more than 20 insurers in each matter) on instructions from the local leads, who provide the Contract Works project insurances for the construction of the onshore facilities for Chevron’s Gorgon and Wheatstone Projects.
We represent the upstream insurers of APLNG’s LNG project in Queensland. APLNG alleges fatigue damage in welded connections of high-pressure gas pipelines due to excessive vibration and low temperatures during commissioning, seeking AUD $140 million from insurers. The case involves intricate engineering concepts determining insurers’ coverage stance, including whether fatigue life consumption constitutes “damage” and the application of LEG 2. We collaborate with international experts and renowned barristers from the UK, Texas, Colorado, and Ohio to prepare insurers’ defense.
We advised a global market of insurers on coverage under a bespoke renewables package policy in respect of a large claim for numerous failed IGBT units. The claim involved complex issues around multiple deductibles, construction and application of the series loss clause and application of the LEG 3 exclusion. On our advice, insurers declined the claim and after a period of debate with the Insured, the claim was ultimately withdrawn resulting in a substantial return on reserve for insurers.