Introduction: A vessel hired by an EPC contractor collided with and damaged an offshore platform, resulting in a disputed insurance claim. We conducted a thorough assessment of the platform’s damage, evaluated the well-plugging requirements, and estimated the costs needed to restore the platform to its pre-incident condition. Our findings and expert opinions were provided in a technical expert report, a joint expert report, a response report, and supplementary reports before giving testimony at the Commercial Court in London.

Operators need to continually invest in sustaining targeted production levels over the lifespan of offshore oil and gas fields. They engage EPC (Engineering, Procurement, and Construction) contractors to manage, execute, install, and commission these large-scale projects in areas, often in regions densely populated with offshore infrastructure. For example, the Gulf of Mexico alone has approximately 3,000 operational oil and gas structures. To mitigate the risks inherent in their project undertakings, EPC contractors secure insurance policies covering various construction-related hazards, including those linked to the vessel fleets essential for offshore operations.

During an offshore construction project, a vessel chartered by an EPC contractor deviated from its intended path, colliding with and damaging a wellhead platform unrelated to the project. The EPC contractor and operator conducted damage surveys and estimated the costs of plugging the affected wells and repairing the facilities. When the EPC contractor filed an insurance claim, coverage for the liability and costs was disputed.

Baker & O’Brien was retained to analyze the extent of the damage and the requirements for plugging the wells and estimated the repair costs to restore the facilities to their pre-damage condition. Our team reviewed the platform’s design and the wells’ condition based on available data, examined third-party investigations and offshore damage survey reports, and considered the operator’s offshore construction and repair requirements. Before testifying in the Commercial Court in London, we prepared several technical expert reports as well as a joint expert report.