We are pleased to provide you with our first energy insurance quarterly newsletter of 2019. There are sizeable opportunities for energy firms willing to invest and operate internationally. The sector is emerging from a sustained period of weak prices that forced firms to seek production efficiencies and cut back on capital expenditure.
According to PwC, upstream capital expenditure is now forecasted to rise by 6% year-on-year in the period to 2025, having dropped by 45% in 2014-2016. Exploration spending is also expected to rise by a 7% compound annual average growth rate in the near term, having collapsed by 60% in 2014-2016.
Much of this spending will see oil and gas companies operating in higher risk emerging markets, such as Peru, Ghana, Côte D’Ivoire and Mauritania. Entering these territories for the first time can bring exposure to a range of political and security risks for energy firms, whilst risks can shift rapidly in existing countries of operation.
Also in this edition:
- General state of the market overview
- Market moves / People in the news
- New products and market developments
- Demystifying common clauses
- Atlantic named windstorm forecasts
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For further information, please contact John Cooper, Senior Partner in the Energy Division on: +44 (0)20 7466 6510 or email: firstname.lastname@example.org.