Page 71: of Maritime Reporter Magazine (April 1993)

Recent Tanker Spills

Convince Underwriters To

Sell Owners Reinsurance

The recent "Aegean Sea" and "Braer" tanker disasters have seemed to indicate to marine un- derwriters that these types of inci- dents are unlikely to result in the massive damage claims originally anticipated, making it possible for shipowner protection and indem- nity (P&O) clubs to buy reinsurance for the coming year.

According to an industry source, the two disasters have convinced underwriters that the majority of risks are insurable.

Only in the U.S., where the Oil

Pollution Act of 1990 imposes large punitive damages, would claims be likely to exceed the maximum $700 million in oil-spill liability coverage available in the marine market.

Another important factor is that many countries, not including the

U.S., are signatories to interna- tional conventions that limit ship- owner liability in the event of an oil spill, except in gross negligence cases.

The worst case involving the In- ternational Oil Pollution Compen- sation Fund, established in 1978, was the "Haven" tanker accident off of Italy in 1991 in which some 1,350 claims for compensation to- taling $1 billion have been submit- ted to the Italian courts so far.

Most claims, however, are for much smaller amounts.

The total amount of compensa- tion paid out by the fund over the past 14 years is less than $100 million for 62 incidents, which is an amount more than half of which occurred in Japan.

Liability insurance for 95 per- cent of the world's merchant fleet is provided by 17 P&O clubs. The clubs presently offer unlimited li- ability coverage for all risks accept oil pollution, which has a ceiling of $500 million.

A further $200 million of cover- age is available in the commercial markets.

A limit on non-oil pollution risks is expected to be introduced by the

P&O clubs after February 1994.

Texas Drydock Delivers

Offshore Drill Barge

To ENSCO Drilling

Don Covington, president and

CEO of Orange, Texas-based Texas

Drydock, Inc., (TDI) announced the delivery of the first of two hulls to be constructed for ENSCO Drill- ing Company, a wholly-owned sub- sidiary of Energy Service Company,

Inc. (ENSCO).

Designated the ENSCO VII, the cantilevered, floating drill barge was formally christened at ceremo- nies held at Texas Drydock and the

Brown Center in Orange.

Principal speakers for the event

April, 1993 were: Mr. Covington; Carl

Thorne, chairman and CEO of

ENSCO; and Rich Wilson, senior vice president and COO of ENSCO.

Myra Hendricks, wife of Warren

Hyndricks, president of ENSCO

Drilling (Caribbean), was the event's sponsor.

The vessel is capable of working to a drilling depth of 15,000 feet at a water depth of 125 feet, and will accommodate a crew of 16 people.

The drilling rig departed for Ven- ezuela where it will begin work in

Lake Maracaibo for Lagoven, a sub- sidiary of PDVSA, the national oil company.

ENSCO has entered into five-year contracts with Lagoven for four new barge drilling rigs.

The ENSCO VI is the first of two offshore drilling rigs being con- structed for ENSCO by Texas

Drydock.

The second, the ENSCO IX, is scheduled for delivery on the first of

April.

Founded in 1986, Texas Drydock,

Inc., has four waterfront facilities in the Port Arthur-Orange-Sabine area where it is also involved in the repair and turnkey modification of offshore rigs, drydocking and repair of ocean- going barges and fabrication of off- shore production facilities.

For additional information on the services to the maritime industry from Texas Drydock, Inc.,

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