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.