1. Four Years of Implementation of Protocol on Oil and Gas Insurance Placement: Challenges and Prospects Emmanuel Wadie BSc. (Admin), ACII (UK) Senior Energy Underwriter November 2018

2. GENERAL OVERVIEW GOGIP Overview: Market Performance GOGIP Operations
GOGIP and operations
Challenges with Protocol implementation
Prospects for the next 5 years
Questions
GOGIP Overview:
Who is GOGIP
History
Objectives
Pool Membership
Governance & Management
Market Performance
Global Claims
Ghana Claims
Major Clients
Key International Partners
GOGIP Operations
Mandate of the Pool
Assets to be insured
Major assets insured so far
GOGIP’s Future
Outlook for the next 5 years
Compliance & Sanctions
Q&A / AOB

3. GOGIP Overview

4. GOGIP Established in 2010 to allow insurers in Ghana write larger risk
The exclusive body authorised to provide insurance for assets and liabilities directly relating to upstream Oil and Gas
Mandated by:
Insurance Act 2006, (Act 724)
Petroleum Local Content and Local Participation Regulation, 2013, (L.I. 2204)
Protocol for the Placement of Upstream Oil and Gas Insurance Risks, 2014
Pool Managers:
2010 to Sept 2016: SIC Insurance
October 2016 to Present: Enterprise Insurance
Represents all licensed general insurance and reinsurance companies in Ghana with present membership: 22 insurance and reinsurance companies
2007: Ghana discovers oil
2009: Consortium formed by the Ghana Insurance Association (+ WHY)
2010: Resolution passed to dissolve the Consortium and establish an Insurance Pool
Ghana Oil and Gas Insurance Pool (GOGIP) is the exclusive body authorised to provide insurance for assets and liabilities directly relating to the exploration, appraisal, production, storage and transportation of Oil and Gas.

5. Objectives
Reduce foreign exchange outflow by building in-country insurance capacity
Ensure oil companies within Ghana are charged competitive premium rates that will enhance profitability and stabilize insurance market
Develop manpower capacity and technical expertise in the insurance of oil and gas related risks

6. Operations

7. Major companies operating in Ghana

8. Assets insured by GOGIP
3 FPSOs on three producing fields
4 drillships
15 Offshore support vessels
Over 70 wells offshore Ghana
Subsea assets including wellheads, umbicals, risers, etc .
Total insured valued is circa USD 20 billion

9. Market Performance

10. GOGIP Insurance Premium

11. Offshore Claims

12. Challenges

13. Challenges Use of offshore insurance in Ghana contrary to the Protocol
Lack of awareness of the existence of the Protocol
Lack of confidence in the local market
Direct insurers underwriting some upstream risks reserved for GOGIP
Activities of Joint monitoring team for compliance is yet underway

14. Prospects

15. Prospects
5 year strategic plan to retain 20% of upstream insurance premiums in Ghana by
Increasing retention capacity from the current USD 14 million to USD 50 million backed by “A” Rated Lloyds Syndicates from 2019
NIC reviewing guidelines to enable direct insurance companies to participate in oil & gas insurance risks from GOGIP will continue to develop technical capacity for the industry.
Early engagement at exploration stage to ensure smooth placement of insurance through the local market, building stronger relationships with operators, contractors
Stricter monitoring of compliance by regulators (NIC & PC). GOGIP to support this move.
Regular interactions with key stakeholders through workshops and seminars for sensitisation and education

16. Questions?

17. Thank you
Emmanuel Wadie, BSc. Admin, ACII (UK) Senior Energy Underwriter