On 23 July 2018, the National Agency for Industrial Safety and Environmental Protection of the Hydrocarbons Sector (ASEA for its acronym in Spanish), published in the Federal Official Gazette, General Administrative Guidelines (the Guidelines) that establish the guidelines for insurance that must be obtained by regulated entities (the Regulated Entities) when carrying out the following activities:
- Natural Gas compression, liquefaction, decompression and regasification, as well as transportation, storage, distribution and retail;
- Transportation, storage, distribution and retail of petroleum products; and
- Pipeline transportation and storage linked to petrochemical pipelines, oil refining products and natural gas processing.
The Guidelines establish the elements and characteristics of the mandatory insurance that Regulated Entities must obtain to cover against civil and environmental liability in order to, if applicable, deal with harm produced by their activities.
Insurance limits will be set: (i) in accordance with results of a likely maximum loss study or (ii) based on the liability limits established int the Guidelines, as indicated below:
Compression, decompression, liquefaction and regasification of natural gas, not integrated into a pipeline system; (iii) retail establishments located at aerodromes or sites adjacent to maritime and river zones; and (iv) if within the same facilities, Regulated Entities have equipment to simultaneously carry out the retail of oil products and natural gas, the civil and environmental liability limit will have to be determined through the maximum likely loss study.
Finally, Regulated Entities must register their insurance policies with ASEA, prior to carrying out any works or activities. Please note that Regulated Entities that have already secured a valid insurance policy as of the date of publication of the Guidelines, may register it with ASEA, and at the end of the term of the insurance policy, the corresponding adjustments must be made in accordance to the Guidelines