January 25, 2005 by Canadian Underwriter
The shutdown of Calgary, Alberta-based Suncor Energy Inc. following a fire earlier this month, could produce a significant insurance bill as the company announces it will not be back to full production until the third quarter of this year.
Suncor is part of OIL Mutual Insurance and sEnergy, insurance companies created by the energy industry. The company says it carries property loss and business interruption policies with a combined coverage limit of US$1.15 billion. The property loss deductible is US$10 million, while the business interruption deductible is subject to a 30-day waiting period on the first US$200 million of coverage and a 90-day waiting period on the remaining coverage.
The company says that while it investigates and repairs damage from the January 4th fire at Suncor’s Fort McMurray, Alberta oil facility its oil sands production will be cut in half approximately about 110,000 barrels a day.
The cause of the fire and overall damage estimates are not yet available, Suncor says.