$800mn potential loss for energy market after Abu Dhabi fire

A recent fire at the Takreer Ruwais refinery in Abu Dhabi has led many in the downstream energy market to brace for a major loss. Abu Dhabi National Oil Company (Adnoc) owns the refinery and has spread the risks over multiple policies. Those who have the biggest exposure to the potential loss have been reported as being, Chubb, Liberty Specialty Markets and QBE. JLT is believed to be Adnocs broker. Initial loss estimates put the exposure at £50mn but after further analysis the fire damage is worse than first anticipated and now is expected to fall between $450mn and $500mn. Adnoc did not take out business interruption cover which will reduce any exposures; however, the refineries closure will impact other companies who have taken out business interruption cover. Early indications pointed to a potential loss of $300mn from this portion of the claim.