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LARGE
Insurance Accounts
Whitcomb Surplus Lines participated for 60% of the first $100,000,000 in limits for the “Super Package” (Control of Well) program, an insurance placement that included all the liability and physical damage exposures for one of the worlds largest multinational fully integrated oil companies.

In the 1980’s the insured was drilling 147 miles off Sable Island Nova Scotia and encountered a high pressure gas deposit at around 18,000 feet. The platform experienced shuddering and the crew was evacuated. The platform seemed to settle down so the crew returned the next day and resumed drilling. The well again began shuttering and the crew again evacuated. This time however the well blew out, taking the blow-out preventers, which had been set at 12,500 psi along with the entire platform with it. The out of control well blew natural gas day and night from September of that year through the following June and the sea for a mile and a half around the blow out was so permeated with gas that boats would not float, but sank into the gaseous salt water. The oil company and the insurers brought in two drill ships from Jakarta at a cost of not less than $60,000 a day including travel time and one drill rig from the North Sea. Slant drilling from a mile and a half away from the blowout finally intercepted the well stem and the well brought under control.

The total cost was $277,000,000. Portion paid by insurers arranged by Whitcomb; $32,000,000