| Details: | All companies working for oil and gas operators on the UK continental shelf (UKCS) are being invited to sign up to the new industry mutual hold harmless deed (IMHH) which, like its predecessor, helps companies to clarify the allocation of risks and avoid doubling up on insurance of identical risks offshore.
The existing IMHH terminates at the end of 2011 and to ensure continuity of cover for everyone, we have established a new deed that extends the scheme to the end of 2021. 22 companies have signed up to the deed already, including affiliates of Aramark, Halliburton, Subsea 7, Trinity and Weatherford. All remaining members of the existing IMHH and those new to the scheme are being encouraged to sign up by way of a deed of adherence as soon as possible. Those aready committed to doing so include Heerema, PSN, Schlumberger and Wood Group.
Paul Dymond, Oil & Gas UK's operations and supply chain director, said: "It is not unusual to have ten or more companies working alongside each other offshore. The IMHH addresses the contractual gap which traditionally exists between them so that the allocation of risk and liability is clear in the event of injury or loss.
"The IMHH is not tied to a specific contract for services or to specific facilities but is intended to underpin all offshore activity in the UKCS. Given the drive to take action through the courts and the savings to be made internally by parties involved in claims, it is estimated that the IMHH saves all parties considerable management time and expense. The deed should also lead to a reduced number of insurance claims and counter claims which can be reflected in reduced premiums."
The IMHH was originally developed in 2002 but terminates at the end of 2011; to ensure familiarity and consistency, the new deed is similar to the original. However, it now covers Irish Waters and applies to companies operating emergency response and rescue vessels, supply vessels and crane vessels, which it did not before.
Hugh Williams, chief executive of the International Marine Contractors Association (IMCA) and a LOGIC director, said: "As with the original IMHH, companies who sign up to the new deed will benefit from a quicker and smoother negotiation about contractual responsibility and indemnity matters. In particular, IMHH is a cost effective and efficient means of achieving improved risk management for both small and medium sized enterprises (SMEs) as well as larger companies. Indeed, smaller companies probably benefit more from IMHH because it keeps their risks in proportion to their involvement.
"It is important to note that the IMHH does not supersede any existing contractual relationships between parties. On the contrary, it provides a safety net, by plugging gaps where no contractual arrangements exist between companies working offshore."
To sign up to the new IMHH, please contact Pia Mandler at Oil & Gas UK on 01224 577252.
ENDS
Notes to Editors
LOGIC, a wholly owned subsidiary of Oil & Gas UK, was set up in 1999 to stimulate supply chain collaboration and improve the competitiveness of the UKCS.
The IMHH Steering Committee comprises representatives from Offshore Contractors Association (OCA), Oil & Gas UK, International Marine Contractors Association (IMCA) and Well Services Contractors Association (WSCA). |
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