Insurers operating in the Oil & Gas sector, represented by the Insurance Consortium for Oil and Gas Uganda (ICOGU), are anticipating an increase in underwritten premiums in light of the promising prospects within the Oil and Gas industry.
In a statement preceding the Oil and Gas Symposium scheduled for February 20 – 22, 2024, at Four Points by Sheraton, industry stakeholders highlighted the significant progress made in 2023, with USD 13 million already registered out of a total investment of USD 20 million.
James Maguru, the leader of the ICOGU Consortium, emphasized the positive returns on investment, considering the nascent nature of their involvement in the sector. He noted that the phased repayment structure has resulted in the receipt of USD 13 million and expressed confidence that the remaining balance will be settled in due course.
The primary objective of the upcoming 3-day symposium is to update ICOGU members on the latest developments in the Oil & Gas sector and address pertinent areas of concern. By doing so, participants aim to make informed decisions regarding their participation in consortium insurance plans.
Paul Kavuma, Chairman of the ICOGU Technical Committee, highlighted the symposium’s role in fostering industry expertise, particularly in light of Uganda’s evolving Oil & Gas sector and the need to learn from established markets.
Discussions during the symposium will encompass various critical aspects, including underwriting oil and gas risks, Contractors’ All Risks, reinsurance for oil and gas risks, claims and loss adjusting, as well as liabilities and business interruption.
Given the substantial operations within the Oil & Gas sector and the inherent risks associated with exploration, drilling, refining, and transportation, insurance plays a pivotal role in ensuring sustainability and uninterrupted continuity by mitigating losses resulting from accidents and natural disasters.
Latimer Mukasa, Chairman of the Uganda Insurance Association (UIA), underscored the association’s commitment to ICOGU and its members, emphasizing the importance of safeguarding their interests and ensuring their meaningful contribution to the sector.
