1. HISTORICAL BACKGROUND  1.1  Australia is a federation (officially known as the Commonwealth of Australia) consisting of six States and two major Ter­rit­or­ies.  1.2 Traditionally, arbitration in...

The survey represents the views of over 80 industry professionals covering most regions of the world: Europe, the Middle East, Asia-Pacific, Africa, and Latin America. We are grateful for their valuable insights into how and where disputes arise and how they are managed in different markets across the industry. For a high-level view of our survey findings, we invite you to scroll through the below infographic, describing our survey respondents’ key concerns.  

Welcome to the 2023 edition of the CMS Annual Review of developments in English oil and gas law, featuring commentary and analysis on the latest developments in English oil and gas law. This year’s edition of the Oil and Gas Annual Review brings to light the energy trilemma, where, amidst waves of unprecedented events, the challenge of meeting the goals of energy security, climate change/sus­tain­ab­il­ity and affordability, remain at the heart and strategic thinking as to the industry’s framework and future. The 2023 Annual Review deals with recent case law relevant to LNG sales, decommissioning, oil and gas projects and supply chain, contractual construction, shipping and commodities, protestor actions, tax, and more issues that impact the day-to-day workings of the oil and gas industry. In dealing with the above, this edition also explores emerging issues that are prevalent in the UK and which are beginning to gain resonance across multiple producing jurisdictions, and also reflects on the Courts continued commitment to international arbitration and alternative dispute resolution. You can read the CMS Annual Review of developments in English oil and gas law in electronic magazine format or via the ‘download publication’ button. If you would like to request a hard copy, please contact Amy Hill-Burton.

Sector-focused legal advice for the full lifecycle of your mining project From preliminary negotiations with government bodies to secure crucial mining titles, through to project development, financing...

We are delighted to present this year’s CMS Oil and Gas Disputes Survey. Once again, we have reached out to a wide cross section of senior legal managers and senior in-house counsel representing key players to get their views on the main drivers of disputes and dispute management within the global oil and gas industry. As part of our in-depth survey, we have also focused on what legal experts are doing to manage the risk of conflicts arising within their operations and to mitigate the prospect of disputes. The survey represents the views of over 50 industry professionals covering all corners of the globe: Europe, the Middle East, Asia-Pacific, Africa, Latin America, and North America. We are grateful for their valuable insights into how and where disputes arise and how they are managed in different markets across the industry. Given the multiple international regions covered by our report, with their different regimes and differing priorities and issues, it’s not surprising to see a broad range of views being conveyed by the survey participants. There are however some common areas of concern that respondents in all regions have highlighted in terms of the impact they have on triggering industry disputes. These include the potential for supply chain issues to lead to a dispute, a concern which will only have been heightened by Russia’s invasion of Ukraine.

Legal Issues to Consider and Manage in 2022/2023 2022 was a challenging year for many businesses, including for those in the energy sector. 2023 looks to be just as demanding. Slow global growth, the war in Ukraine, continuing supply chain challenges as well as the after-effects of the COVID-19 pandemic are some of the factors causing disruption to business. Here, we highlight some of the legal issues that a party doing business in the energy sector in a volatile market could expect to encounter, and how the risks may be managed. Supply chain risk Current supply chain shortages and restrictions, exacerbated by labour and materials cost inflation which continue from the Covid-19 pandemic. Manage risks by:Actively reviewing robustness of supply chain in a crisis (at all tiers). Ef­fect­ive force majeure drafting and planning. Ensuring there is sufficient security for delivery obligations and carrying out regular credit checks on suppliers.  Termination risk Volatile markets tend to result in additional termination risks:Manage risks by:Review portfolio of key contracts for contracts at risk. Actively engage with counterparties to mitigate risk of termination for essential contracts. Utilise termination rights to escape onerous contracts. Counterparty risk Increased counterparty insolvency risk caused by market volatility. Manage risks by:Conducting effective due diligence. Carrying out detailed assessments on cred­it­wor­thi­ness. Ensuring financial security in the event of insolvency (on-demand bonds, letters of credit etc.). Government intervention The increasing export or import-related restrictions imposed by Governments. Manage risks by:Considering fulfilment of contractual obligations. Reviewing contractual rights and ability to use alternative sources of supply. Careful consideration of trade portfolio. EPC ‘Hot market’ A perfect storm of under supply, over demand, inflation pressures, and legacy of the Covid-19 pandemic for the engineering procurement and construction market will require effective management of:Proper assessment of ability to deliver at tender stage. Contractual damages and incentives for ‘on time’ delivery. Managing project change. Sanctions Sweeping financial global sanctions as a result of Russia’s War on Ukraine may impact your business. Manage risks by:Reviewing nexuses to Russia. Identifying sanctions which apply. Managing any business from a reputational and ESG-based perspective, and consider alternative options. Price volatility LNG spot price is at an all-time high, with potential volatility in all commodity markets. Manage risks by:Careful consideration of counter-party non-delivery, force ma­jeure/ter­min­a­tion. Preparing for circumstances of an inability to deliver / accept delivery and whether any force majeure clause excuses performance. Check price review / reopener clauses in long-term agreements. Careful consideration of any impact on cost base and margin calls. ESG transformation The drive towards net zero and ESG expectations. Manage risks by:Reviewing contractual arrangements for carbon neutral trading and contracting. Considering whether counter-party net zero and / or ESG commitments have adequate remedies in the event of breach. Managing regulatory changes and company policies.

Welcome to the ICE Disputes podcast series, 'Building Voices'. The CMS ICE Disputes team has launched a new podcast series, Building Voices. Building Voices is a new podcast series that focuses on the...