Irene SL: bumper profits on marine K and R

The Irene SL’s cargo of Kuwaiti crude oil represents nearly 20% (one fifth) of total U.S. daily crude oil imports. This one cargo is 12% of all oil coming out of the Middle East Gulf each day, and 5% of total daily world seaborne oil supply.

"Underwriters are paying far more attention to the security measures taken by owners. We can negotiate a discount off the price of financial protection against attacks by Somali pirates for those measures being put in place."

The most widely used on-board defenses against piracy include razor wire and so-called citadels - secure rooms with communications equipment into which crew members can retreat while remaining in control of the vessel until naval forces arrive.
Ship owners typically buy marine kidnap and ransom cover in the Lloyd's of London market, insuring themselves against the cost of raising and delivering multi-million dollar ransom payments.insurers are likely to step up their demands that ships operating in pirate-infested waters take physical precautions against attacks. Hiscox is the biggest provider of marine K and R in the Lloyd's market. In 2006 Hiscox plc moved its country of domicile from the United Kingdom to Bermuda, adopting the new name Hiscox Ltd
Insurers are reluctant to disclose the size of marine K and R premiums or claims for fear that pirates will use the information to set their ransom demands, with any increase potentially setting off an inflationary spiral.
Prices initially rose strongly in the face of strong demand before levelling off last year because of increased competition as more insurers entered the market, attracted by the bumper profits on offer.

deepwater horizon: Ixtoc 1 a bigger spill

If your criterion for the worst oil disaster is the greatest volume of oil leaked, then the Lakeview Gusher of 1910 released at least twice as much oil into a semi-desert area of California as this leak has released so far. This leak is without question the worst oil disaster at sea in United States history, but it does not yet match the volume of an Mexican oil-well blowout known as Ixtoc 1, also in the gulf, in 1979-80.

effects of the oil spill? Under the Oil Pollution Act of 1990, BP, the owner of the well, has been named the “responsible party” and bears the brunt of liability for the spill. That means the company must foot the bill for the cleanup efforts and pay claims for economic damage, as well as penalties under the law. Other companies involved with the well could find themselves drawn into litigation.

BP is owned by investors all over the world. BP estimates that about 40 percent of their shares are owned by British investors, and nearly as much by American investors. Another 10 percent are owned by other Europeans, and the remaining 10 percent by investors from other countries outside Europe. Since much of the stock is owned by mutual funds, it is not easy to determine the exact percentages of the nationalities of its owners. Suffice it to say, many Americans and Britons depend on BP dividends. here







Anadarko Petroleum, has a 25 percent stake in the project, and its joint operating agreement with BP gives it a 25 percent share of the liability, a potentially ruinous amount. “The mounting evidence clearly demonstrates that this tragedy was preventable and the direct result of BP’s reckless decisions and actions,”

Mitsui Oil Exploration Company of Japan, which owns the remaining 10 percent of the well, said the company had given up its interest in oil from the well. The company may be hoping that relinquishing its interest will shield it from liability,

Lloyd’s of London may cover BP’s “excess liability” in cleanup and other costs. under its Transocean contract affording protection to pollution “originating above the surface of the land or water.” here