The main purpose of this paper is to provide a methodology of decision whichwill help the Oil Companies Risk Managers to deal with some specific materialrisks, utilizing insurance coverage, in projects with private partners assumingthe financial support of a new offshore facility construction and operationinstead of Public sources.

To that end, we will discuss a possible Risk Management process, whichencloses the Loss matrix for risk assessment, in order to evaluate the worstloss scenario that can impact the cash flow of the business, which isstructured by Project Finance modeling.

Keywords:
risk and uncertainty assessment, risk assessment, materialization, loss matrix, consequence, upstream oil & gas, category, scenario, ps 1, insurance
Subjects:
Risk Management and Decision-Making, Risk, uncertainty, and risk assessment
Copyright 2003, Society of Petroleum Engineers
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