U.K. Refinery Fire Losses Estimated at $354 Million

December 15, 2005

U.K. firefighters have largely extinguished the mammoth fire that broke out north of London in the Buncefield fuel depot. The BBC reported that “contained fires at the depot are now being allowed to burn themselves out.”

News reports indicate that loss claims from the fire could reach £200 million ($354 million). A report from Reuters cites statements from broker Alexander Forbes indicating that the largest claims will probably come from Chevron and France’s Total S.A. who lost a good portion of the fuel stored at the facility. These claims are expected to be around £ 120 million ($213 million).

A large number of claims will also be filed for damages to property in the vicinity of the explosion and fire. The majority, however, are not expected to be significant. They could eventually add up to around £5 million ($8.86 million).

The remainder of the claims are expected to be for damages to warehouses and storage facilities located near the blast scene. These could total as much as £50 million ($88.6 million). Business interruption claims could add another £20 million ($35.5 million).

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