Lloyd’s Market Association Bulletin

The LMA’s Onshore Energy Business Panel Engineering Sub-Group has published updates to three risk engineering documents, previously published in 2015 and 2018, following a review to ensure that they remained fit for purpose and incorporated learnings from their use.

The updated documents and a summary of the changes can be found below. The release notes can be downloaded here.

IGRES – Key Information Guidelines for Oil, Gas and Petrochemical Risk Engineering Survey Reports

• Emphasised the importance of business interruption (BI) elements being adequately covered
• Inclusion of IGBIS (Key Information Guidelines for Oil, Gas and Petrochemical Group Wide Business Interruption Studies)
• Added coverage of Operational Risk Assessments (ORAs) to control deviations from Standard Operating Procedures (SOPs)
• Added maintenance budget information and trends.

COPRES – Code of Practice for Delivery of an Oil, Gas and Petrochemical Risk Engineering Survey Programme

• Emphasised the importance of business interruption (BI) elements being adequately covered
• Inclusion of IGBIS (Key Information Guidelines for Oil, Gas and Petrochemical Group Wide Business Interruption Studies)
• Referenced the use of virtual surveys during COVID and made it clear these have their place, primarily as recommendation updates or pre-survey meetings, but they do NOT replace the standard survey process
• More clarity on “value add” during the standard survey, such as better focus on BI exposures and client workshops on key aspects such as recent losses.

GRES – Guidelines for the Conduct of Oil, Gas and Petrochemical Risk Engineering Surveys

• Emphasised the importance of business interruption (BI) elements being adequately covered
• Inclusion of IGBIS (Key Information Guidelines for Oil, Gas and Petrochemical Group Wide Business Interruption Studies)
• Highlighted the value of virtual pre-survey meetings, to aid in the collection of information, refinement of the agenda, and the potential to make the survey itself more valuable and focussed on key areas
• Guidance on closure of previous recommendations.

Dele Fajimolu

Senior Executive, Technical Underwriting
dele.fajimolu@lmalloyds.com