Insurance companies reject Chevron’s lawsuit over Iran’s oil seizure in Gulf of Oman

Marshall Islands-flagged oil tanker Advantage Sweet, which, according to Refinitiv ship tracking data, is a Suezmax crude tanker which had been chartered by oil major Chevron and had last docked in Kuwait, sails at Marmara sea near Istanbul, Turkey January 10, 2023. REUTERS/Yoruk Isik
Three insurance companies reject Chevron's lawsuit over Iran seizing an oil shipment. The tanker was boarded by the Iranian military in the Gulf of Oman, resulting in the confiscation of the crude oil. Chevron's $57 million lawsuit was dismissed by Zurich American Insurance, Liberty Mutual Insurance, and Great American Insurance.
Share it now

Three insurance companies – Zurich American Insurance, Liberty Mutual Insurance, and Great American Insurance – have rejected Chevron’s $57 million lawsuit over Iran’s seizure of an oil shipment in the Gulf of Oman in April 2023. The tanker chartered by Chevron, Advantage Sweet, was boarded by the Iranian military, and its crude oil cargo was confiscated and transferred to an Iranian ship. The insurance companies argued that the oil seizure was not covered by Chevron’s ocean freight or war risk policies.

According to the insurance companies, the seizure of the crude oil and its expropriation by Iran did not constitute ‘warlike operations,’ therefore rejecting Chevron’s war risk coverage claim. Additionally, the marine cargo insurance did not cover seizure or confiscation, whether in times of peace or war and whether lawful or not. Chevron, which chartered Advantage Sweet to transport crude oil to Houston from the neutral zone area shared by Saudi Arabia and Kuwait, has oil production operations in the zone.

Chevron has not responded to the rejection of its lawsuit by the insurance companies. The case was filed in a U.S. District Court in San Francisco, and the insurance companies have requested the court to uphold the dismissal of the lawsuit. The rejection of the claim highlights the complexities and challenges faced by companies operating in politically volatile regions like the Gulf of Oman.

Source .


Share it now