Joint Rig Committee Joint Rig Committee Broker Forum 29 June 2012

Joint Rig Committee Committee Terms Of Reference To provide a representative forum for the London upstream marine energy market To promote efficient operation and the highest technical standards in the London marine upstream energy market To respond to requests from practitioners in this sector and others, for advice and recommendations on relevant issues In relation to any model wordings: to consult with practitioners in the relevant sectors or classes of business, and following this to publish such model wording on the JRC Webpage and any other appropriate wordings repositories To promote the profile of the London market internationally To communicate regularly with the upstream marine energy market on pertinent issues including the Committee’s ongoing work and that of its sub-committees and working parties

Joint Rig Committee JRC Membership Committee consists of 15 members drawn from employees of LMA and IUA members Members are appointed by annual election by LMA and IUA members In addition, there is: One representative from the marine energy claims community, to provide liaison with the Joint Marine Claims Committee One representative of a London-based Law firm In accepting Membership of the Committee, that individual/organisation agrees to be bound by the JRC Terms of Reference and to comply with the LMA’s and IUA’s Competition Compliance Guidelines

Joint Rig Committee Membership NameCompany Paul DawsonHardy Underwriting Simon ButtonHCC Underwriting Agency Ltd Carl DayHiscox Syndicates Ltd Stephen HawkinsCatlin Underwriting Agencies Ltd Dominick HoareWatkins Syndicate James McDonaldTalbot Underwriting Simon MasonAspen Insurance UK Ltd Len MessengerLancashire Insurance Company James MillerAce Underwriting Agencies Ltd Richard PalengatAegis Managing Agency Ltd Brian RandallBrit Syndicates Ltd Frank StreidlZurich Global Corporate Stephen WarrenCanopius Managing Agents Ltd Chris WalkerBerkley Offshore Underwriting Duncan WilsonQBE Underwriting Ltd Tim TaylorClyde & Co Geoff JonesCatlin Underwriting Agencies Ltd

Joint Rig Committee Subcommittees & Working Groups Subcommittees : Survey and Engineering Sub Committee Communications Subcommittee Working Groups (focusing on specific issues): -WELCAR Wording working group -Contingent Operators Extra Expense (OEE) Wording working group A new working group on the Energy Exploration and Development (EED) wording is also being formed Membership is composed of JRC members and others by invitation

Joint Rig Committee Typical JRC Agenda 1.Minutes of the previous meeting 2.Matters Arising from the Minutes 3.JRC Workplan and Budget Engineering and Survey Sub-Committee – report 5.Emerging Risks 6.Claims and Legal Matters 7.Any Other Business

Joint Rig Committee JRC 2012/2013 Workplan

Joint Rig Committee LMA/JRC Website

Joint Rig Committee EED Wording EXAMPLE : EED Review Terms of Reference and Procedure Step 1 Set Terms of Reference and Procedure EXAMPLE : “AIM To review the EED wording with the purpose of proposing a limited number of changes which will clarify the intent of the existing wording and provide for updated drilling techniques METHOD We will convene a Committee with 4 underwriters and 4 brokers. The Committee will be supplemented by technical support: Engineering, Legal, Drafting. The Committee will determine what is to be considered for change and what those changes should be. Consensus in the Committee will be achieved by asking for Proposals for Changes, Voting on which proposals, distributing responsibility for “wording” the changes amongst the committee and Voting on the proposed changes. Step 2 Set Up and Run Working Group Source interested underwriters and brokers, Engineering, Legal, Drafting support. Arrange Kick off meeting. Co-ordinate input from the working group. Establish draft document.

Joint Rig Committee EED Wording Step 3 Consulting Process With Remainder of Market Send draft document to the market + interested parties. Co-ordinate input the market + interested parties. Establish final draft document. Step 4 JRC Approval Present to the JRC for approval. Co-ordinate input from the JRC. Establish final document. Issue to the Market Step 5 Presentation To Market Organise a presentation to the market to explain the significant changes made.

Joint Rig Committee Broker Communications Possible Options As at present Website Each broker to nominate point of contact Broker Committee Proposing Agenda Items for JRC We need your feedback:- Comments to JRC Secretary John Gurtenne or Richard Palengat Aegis

Joint Rig Committee Discussion