Partial settlement reached in $1.75 billion-plus Zurich case

Claims set to go on with other insurers who didn’t agree to settlement

Partial settlement reached in $1.75 billion-plus Zurich case

Insurance News

By Ryan Smith

A Dutch oil industry services group and a Spanish energy firm have reached a partial settlement in an insurance case over a Norwegian offshore project, according to a Reuters report. When the case began two years ago, Zurich Insurance Group – which was one of several insurers covering the project – drafted four law firms to defend it.

Netherlands-based  SBM Offshore and Spanish firm Repsol have reached an agreement in principal with about three quarters of the insurers who provided a total of $500 million in primary cover for the Yme offshore project, according to the newswire. Under the agreement, Summand Repsol would share a final payment of $247 million, minus legal fees and expenses.

However, SBM and Repsol plan to continue pursuing claims against the insurers who didn’t agree to the settlement. In 2014, SBM made a claim related to the Yme project for a total of $1.28 billion (over SGD$1.75 billion), according to Reuters.

SBM built the platform for a Canadian company, Talisman, but the project was plagued with technical difficulties and had to be evacuated due to safety concerns. Talisman was later bought by Repsol, Reuters reported.

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