The Lloyd’s Market Association (LMA) and International Underwriting Association (IUA) are behind the Joint Rig Committee, which has launched its inaugural report entitled, ‘Upstream Oil and Gas Cyber Risk – Insurance Technical Review.’ The Joint Rig Committee is a collaboration of senior oil and gas underwriting leaders, cyber experts and specialists from different technical disciplines.
Among these experts is Francis Lobo, Head of Upstream Energy, who was responsible for authoring the report, and who notes that, “The threat landscape in the virtual world is continuously changing. Oil and gas companies are lucrative targets for cyber attackers motivated by industrial espionage, theft of intellectual property or engaging in indiscriminate criminal activity involving blackmail and ransom demands”.
The report identifies systemic vulnerabilities in the design of oil and gas platforms and states that the periods of greatest vulnerability for these installations are during the project phase and when patches are applied to operating systems. One of the recommendations of the report is that a change in approach to the design of certain industrial facilities is required to adequately control major accident hazard risk that may arise from cyber related scenarios.
The report also offers additional recommendations. You can access the full report here.
Posted on 9th May 2018.