Saudi Aramco, the Kingdom of Saudi Arabia’s state-owned oil company, is currently looking for an insurance provider that can offer coverage against war and terrorism. This comes after the company suffered a drone and missile attack on some oil facilities it owns, said Insurance Journal.
Back in September, Aramco’s facilities in Anqaiq and Khurais were attacked by drones and missiles. Gulf News reported that the group responsible for the attack is Yemen’s Houthi rebels.
The damages are estimated to be around $533 million. Meanwhile, a source revealed that Aramco is covered for “excess of loss” through international providers. This covers any damage over $200 million, however, it does not include damages from war or terror attacks. It also does not include revenue lost during operation disruption.
In light of this, the company is now moving to protect its assets by getting it covered by a London insurance company. Insurance Journal noted that the company did fail to obtain every coverage available for its facilities.
The oil firm also did not expect that the attack will have a material impact on its operations and finances. It is now working to find a suitable insure through a planned listing.
Considered the world’s biggest oil company, Aramco has a presence in Asia, Europe, and the Americas. It recently released an initial public offering (IPO), which was able to obtain $25.6 billion in investments.
Aramco has the option to get policies that cover terror attacks, sabotage, war, and civil war. In the event that it suffers a similar situation while covered, Aramco would receive compensation.
However, Saudi Aramco’s decision to get war and terror coverage comes in light of many European insurance providers refusing to provide policies for coal and fossil fuel-related operations. Some US companies have also made this move.