Risky Business? Allocating risk in international oil & gas contracts – a comparative discussion

Oil and gas projects are often high value and high risk. When things go wrong, the contractual allocation of risk is critical for establishing liabilities and resolving disputes. However, whilst parties may make use of preferred model forms and/or model contracts, approaches vary across jurisdictions and the wording of key provisions (such as indemnities and exclusions) are often subject to negotiation. Without clarity as to how such provisions operate, parties face significant exposure if operations do not go as planned.

In this session, we bring together panellists from the Bar, private practice and VassPetro, an expert industry consultancy, to discuss:
 
• Different approaches to the allocation of risk in the oil & gas sector in different jurisdictions (including England & Wales, the Middle East, the US, Brazil and Norway).
• The use and application of model contracts – how these are used and market norms.
• The treatment of wilful misconduct in commercial indemnities (including “knock for knock” provisions) and exclusions.
• The interaction between indemnity provisions and insurance obligations.
• Practical tips for companies in the oil and gas sector on how to minimise the risk of disputes and position themselves to fight disputes.