Tullow Oil confirms insurance cover for Jubilee turret

Tullow Oil said on Friday that hull and machinery cover for the floating production, storage and offloading vessel on the Jubilee field offshore Ghana has been confirmed following the failure earlier this year of the turret bearing.

The company said the policy, which is procured on behalf of the joint venture, covers relevant operating and capital costs associated with both current operating procedures at the FPSO and the long-term solution.

“As operator of the Jubilee field, Tullow will now work closely with the loss adjusters and reinsurers to establish an efficient payments schedule as remedial work continues.”

Tullow also said it continues to work with its Business Interruption reinsurers on confirming cover for loss of production and revenue caused by the turret bearing failure.

Back in April, the FTSE 250 group announced that there had been damage to the turret bearing but said it did not expect this to have any significant impact on revenue.

Tullow had already signalled a potential problem at the field a couple of months before that, saying at the time that oil production and gas export would continue as normal.