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During reactivation of a pipelay campaign, the post lay survey of a partially completed 30” subsea pipeline identified that each end of the pipeline’s midpoint tie-in had been dragged resulting in buckling to both ends of the line. It was also noted that the valves on the pipeline recovery heads had been sheared off resulting in flooding of both ends of the line with saltwater for an undetermined period of time.
Repairs were carried out to replace buckled end sections of the pipeline at the midpoint tie-in. The ends of the pipeline were then tied in so that an Intelligent pigging campaign could be undertaken. This identified corrosion pitting throughout the line with the worst areas of corrosion being noted at the riser ends of the line near wellhead platforms.
The Principal Insured wished to replace the entire pipeline at a substantial cost. However, detailed discussions and negotiations were undertaken between the Adjuster, Principal Insured and EPC contractor to determine the most cost-effective repair.
An agreement was reached between all parties to replace circa 7Km of the worst affected areas of pipeline near the riser ends. The work was then completed using contract vessels, and the claim was adjusted in line with the WELCAR wording.
This ensured that the settlement was in line with the WELCAR Policy Wording, Terms and Conditions and also resulted in a significant cost saving for Insurers/Reinsurers.