NORECO WILL CONTINUE TO PURSUE SIRI CLAIM

Norway-based energy company Noreco said Friday that it was "actively pursuing the insurance claim relating to the damage to the Siri platform". It said that it was of "the firm opinion that the damage is covered by insurance" and said that it would "actively pursue the claim until a successful outcome has been achieved". The three Siri area fields had been shut down in August 2009 after an inspection revealed cracks in a water buffer tank at the Siri platform. In early 2010, Noreco said that "provided there is found to be cover under its policy, Noreco will for any period of resulting production loss in excess of 60 days receive an insurance payment of $50 per barrel of crude not produced" (IIN 24, January 5 2010). Noreco also noted at the time that the BI cover provided for compensation for costs associated with acts aimed at mitigating loss of production, including temporary or provisional actions to restart production.