The UK is providing an “enhanced” overseas investment insurance (OII) policy to protect businesses investing abroad, including in the oil and gas industry.

OII can protect an investor in the UK against potential losses on investments, primarily related to political or extraneous events.

UK Export Finance (UKEF) is offering UK businesses wider access to government-backed insurance, which it hopes will encourage more firms to invest overseas.

It states: “[The new insurance policy] has been designed to offer cover where there is a commercial demand but the private sector doesn’t have the capacity, such as markets which may have complex legal or political contexts, or in which difficulties may arise over transferring local-currency earnings.”

UKEF has provided financial support to UK companies in sectors including aerospace, construction, oil and gas, mining and metals, petrochemicals and transport.