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Barracuda / Caratinga

Project Insurance

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Fig 6.2

Fig 6.3

Fig 6.4

Fig 6.5

Fig 6.6

Fig 6.7

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Types of Insurance

Construction All Risk (CAR)

Control of Well (COW)

Delay in Start-Up (DSU)

Third Party Liability

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Issues Faced

Market Conditions

Cost

Local regulation requirements

Coverage Terms

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Policy Form

Package of different coverages

Welcar – New Concepts

Valuation – Schedule A and B

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Barracuda & Caratinga DevelopmentProject Insurance Structure

$175,000,000

Excess of

$25,000,000

$25,000,000

Primary policy

$150,000,000

Well Control

Pollution

Redrill

$25,000,000

Drilling Materials

$5,000,000

C.C.C.

$120,000,000

($666,667 per day, up to 180 days)

Sublimits

FCV: FPSO P-43 $761,500,000

FPSO P-48 $678,100,000

$5,000,000 - Standby Charges

$10,000,000 - Offshore Cancellation Costs

$5,000,000 - Forwarding Charges

$10,000,000 - Tests/Trials/Search Costs

$250,000/$50,000 CCC/supplies

$250,00090 Days$50,000 $100,000 $100,000 $1,000,000$250,000

Section I Builder’s Risk

Policies For

Third Party Liability

Section III

Delay In Start Up

Section II

Control of Well

SubseaTowageOnshore Fabrication

Cargo Yard

$25,000,000 - Engineering/Management/Etc.

$10,000,000 - Existing Property

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Finished with Project Insurance ??

Not so fast ….

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Value and Schedule Changes

BARRACUDA / CARATINGA PROJETBARRACUDA / CARATINGA PROJETValues’ Placement AtValues’ Placement AtNovember 15, 2004November 15, 2004

$761,600,000

BARRACUDA“P-43”

$1,011,600,000

$1,051,395,601(est. Final Completed Value)

Policy No. ARS – 2759 insuring Schedule “B” values but not to exceed each Unit’s Schedule “A” amount in the aggregate

Policy No. ARS – 3915 $250,000,000 per occurrence and in the aggregate each unit in excess of Schedule “A” primary values

Policy No. ARS – (T.B.A.) $50,000,000 per occurrence and in the aggregate, each unit; in further excess of $250,000,000

$678,100,000

CARATINGA“P-48”

$906,434,430(est. Final Completed Value)

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Initial Completion Dates – 12/03 & 4/04

Revised Completion Dates – 4/05 & 6/05, then 9/05 & 11/05

Actual Completion Date – March 2006

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