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Insurance firms deny Chevron's $57 million claim for Iran oil seizure
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Insurance firms deny Chevron's $57 million claim for Iran oil seizure
May 8, 2024 7:10 AM

HOUSTON, May 8 (Reuters) - Three insurance companies

have rejected Chevron's ( CVX ) claim over the seizure last year

of an oil cargo by Iran, according to a complaint filed on

Tuesday in a U.S. court in California.

The Chevron ( CVX )-chartered tanker Advantage Sweet was boarded by

Iranian military in the Gulf of Oman in April 2023 and its crude

oil cargo confiscated and later transferred to an Iranian

vessel.

Zurich American Insurance, Liberty Mutual Insurance and

Great American Insurance asked a U.S. District Court in San

Francisco to uphold their rejection of Chevron's ( CVX ) $57 million

claim that includes interest on the loss.

The oil seizure was not covered under either Chevron's ( CVX )

marine cargo or war risks policies, the trio said in their

complaint.

Chevron ( CVX ) did not immediately reply to a request for comment.

"The seizure of the crude oil and its later expropriation by

Iran do not constitute 'warlike operations,'" the companies said

of their denial of war risks coverage.

The cargo also was not covered under marine cargo policy

because that policy did not cover a seizure or confiscation

"whether in time of peace or war and whether lawful or

otherwise," the complaint said.

Chevron ( CVX ) chartered the Advantage Sweet to transport crude oil

to Houston from the Neutral Zone area shared by Saudi Arabia and

Kuwait, the complaint said. Chevron ( CVX ) has oil production

operations in the zone.

"Iranian Navy commandos boarded the Advantage Sweet while

the vessel was in international waters in the Gulf of Oman on or

about April 27, 2023 and seized control of the vessel and its

cargo of crude oil," according to the complaint.

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