The Solvenz Group is launching a first-of-its-kind insurance services and finance platform for oil and gas operators in the US.
The platform, Assured P&A, will provide services to oil and gas operators in the US and Canada with a wide range of services and financial products. These products include P&A financing, a P&A insurance product line, P&A planning, and regulatory oversight.
Insurance products on Assured P&A are issued by Solvenz Specialty Line Insurance Company. Financial strength for Assured P&A’s insurance products is rated “A+” Standard & Poor’s, “AA-” Fitch and “A” from A.M. Best.
Solvenz said that it developed insurance coverages exclusively for Assured P&A. Key features of the coverages include P&A fixed cost completion guarantees, protection against subsurface anomalies, protection against mechanical failure during the P&A completion process, protection against P&A cost overruns, and up to 10 years of post-P&A completion risk from the potential flow-back of pollutants.
“We are excited to have the opportunity as a lead investor and insurance developer for Assured P&A,” said Solvenz managing director of risk analysis and valuation Richard McCrea. “The company is in position for sustained growth, and, by the numbers, will make a direct impact by working to reduce the growing number of unplugged wells located in the US and Canada.”
