ALL COMPANIES working for oil and gas operators on the UK continental shelf are being invited to sign up to the new industry mutual hold harmless (IMHH) deed.
The existing deed terminates at the end of 2011 and the new one extends the scheme until the end of 2021.
Oil and Gas UK said the deed helped firms to clarify the allocation of risks and avoid doubling up on insurance of identical liabilities offshore. Its operations and supply-chain director, Paul Dymond, said: “It is not unusual to have 10 or more companies working alongside each other offshore.
“The IMHH addresses the contractual gap which traditionally exists between them, so that the allocation of risk and liability is clear in the event of injury or loss.
“The IMHH is not tied to a specific contract for services or to specific facilities, but is intended to underpin all offshore activity in the UK continental shelf. It is estimated that the IMHH saves all parties considerable management time and expense.
“The deed should also lead to a reduced number of insurance claims and counter claims which can be reflected in reduced premiums.”
The IMHH was originally developed in 2002, but terminates at the end of 2011.
The new deed is similar to the original, however, it now covers Irish waters and applies to companies operating emergency-response and rescue vessels, supply vessels and crane vessels, which it did not before.