OREANDA-NEWS. On 27 August 2009 was announced, that OJSC SOGAZ, the key member of SOGAZ Insurance Group, has extended its energy risks reinsurance contract for mining companies (upstream facility), concluded for the first time last year.

This contract, which covers property risks and liability risks related to offshore drilling, construction and operation of rigs and sea pipelines and enables SOGAZ to reinsure risks for up to USD 750 million, is a unique project in Russia’s insurance market.

The upstream facility assisted by Willis Limited insurance broker (UK) is arranged with Western reinsurance companies rated by Standard&Poor's at least A in terms of financial stability. The leading underwriter is Catlin (part of Lloyds of London).

Deputy Chairman of the Management Board of SOGAZ Insurance Group, Korney Bizhdov has noted that this facility is intended for major energy projects implemented within the framework of a large-scale development strategy for Russia’s fuel and energy complex. “SOGAZ makes a wide use of reinsurance protection in insuring the pipeline systems of South Stream, Nord Stream and Blue Stream, as well as development projects for Stockman, Prirazlomny and Sakhalin deposits”, reported Korney Bizhdov.