will begin offering total loss coverage with an initial limit of up to $100 million for 50 North Sea production structures effective January 1.

The first-year capital, premiums and related financial commitments of TOPS amounts to $200 million.

Mr. K. Doyle Stephens, the firm's president, said: "We are very pleased to see the fruition of this plan to provide much needed additional capacity at a reasonable cost.

"The formation of TOPS clearly demonstrates that, when needed, the oil and gas industry has the ability to respond quickly to provide the insurance coverage it requires.'' TOPS' shareholders comprise 16 major international oil companies. The company was set up by a group of risk and insurance managers following a nine-month study.

The firm was born out of concern for a shrinking world insurance market and significantly rising rates for large production platforms in the North Sea.

TOPS is not relying on any form of reinsurance but, instead, is supported by the individual oil companies.

It is a risk sharing vehicle that has established an initial rate for its coverage of 0.9 percent.