This insurance product is backed by at least A+ security. The policy will cover a pre-determined number of wells with a pre-agreed drilling and testing schedule. It is designed to be flexible to an individual project’s needs.
Insured Value & Success
- Insured value will be the lower of agreed and actual well drilling costs on
unsuccessful wells under the drilling programme after adjusting for any agreed
salvage, subject to a pre agreed aggregate limit (likely to equate to the cost of
drilling 4 wells in a 5 well programme).
- Threshold for an insured payment is based upon successful wells where the aggregate capacity achieved for the insured drilled wells is below the pre-agreed aggregate capacity insured success level.
- Budgeted well drilling costs will be pre-agreed with project developers and will
incorporate a budget for possible well remediation costs.
The threshold for success will be tailored to the specific project and developer requirements.
There are a numberof items to be considered in determining the availability and
applicability of the Geothermal Well Output insurance, including prior drilling experience in
the geothermal field(s) under consideration, and the nature of the wells to be drilled. The
following guidelines apply:
- All insured wells are to be located and designed as production wells.
- All insured wells are expected to be drilled in the same geothermal field,
although a portfolio of geothermal fields (and their wells) may be considered
in specific circumstances.
- The drilling programme will typically target a single reservoir/producing horizon,
although multiple horizons may be considered in specific circumstances.
- Well depths are to be less than 3.5km, although deeper wells may be considered in
- The cost of each of the insured wells is expected to be the same.
For each covered well, there will be a deductible or co-insurance of at least 10% of the
total well cost.