HOUSTON (Reuters) – Three insurance companies have rejected Chevron’s claim over last year’s seizure of an oil shipment by Iran, according to a complaint filed on Tuesday in a U.S. court in California.
The tanker Advantage Sweet, chartered by Chevron, was boarded by the Iranian military in the Gulf of Oman in April 2023 and its cargo of crude oil was confiscated and then transferred to an Iranian ship.
Zurich American Insurance, Liberty Mutual Insurance and Great American Insurance asked the U.S. District Court in San Francisco to uphold their dismissal of Chevron’s $57 million claim, which includes interest on the loss.
The oil seizure was not covered by Chevron’s ocean cargo or war risk insurance policies, the three men said in their complaint.
Chevron did not immediately respond to a request for comment.
“The seizure of crude oil and its subsequent expropriation by Iran does not constitute ‘war operations,'” the companies said of their refusal to cover war risks.
The cargo was also not covered by the ocean freight policy because that policy did not cover seizure or confiscation “whether in peace or war and whether lawful or otherwise,” the statement said. complaint.
Chevron chartered the Advantage Sweet to transport crude oil to Houston from the neutral zone shared by Saudi Arabia and Kuwait, the complaint states. Chevron has oil production operations in the area.
“Iranian Navy commandos boarded the Advantage Sweet while the vessel was in international waters in the Gulf of Oman around April 27, 2023 and took control of the vessel and its cargo of crude oil “, according to the complaint.
(Reporting by Gary McWilliams; editing by Chizu Nomiyama)
