CMS Annual Review of Developments in English Oil and Gas Law 2015

Welcome to the inaugural edition of the CMS Annual Review of English oil and gas law developments.

2014-2015 has been an interesting period of developments in English law which have a direct impact on the oil and gas industry. This year, the CMS oil & gas team has been advising on a range of high-profile transactions and disputes, arising in the context of falling oil prices and general instability in markets across the globe.

This Annual Review has been collated by the CMS oil and gas team to be relevant to you, with direct focus on legal developments impacting companies in the oil and gas industry. We begin with looking at recent judgments concerning joint operating agreements and third party access agreements, including the right of an operator to be paid for costs incurred without consent and the enforceability of forfeiture clauses, before reviewing recent decisions concerning European gas pricing and competition issues and the exercise of contractual termination rights of the type common in oil and gas contracts. We also look at a number of recent cases relating to ‘Consequential Loss’ clauses, and how English law continues to construe such clauses very narrowly. Finally, we look at a number of recent judgments that are relevant to the prevailing unstable market conditions, including a number of cases relating to M&A negotiations and transactions and the exercise of force majeure rights in hydrocarbons sales agreements.

With Makdessi (forfeiture enforceability) currently awaiting judgment in the Supreme Court and Transocean v Providence (consequential loss – spread costs) currently on appeal to the Court of Appeal, the English courts continue to dispense cases that are directly relevant to the industry.

CMS has been working in the oil and gas industry for many years and we have built an enviable reputation advising key industry players across the globe, in the good times and in the challenging times. The hallmark of this year has undoubtedly been the instability in the market caused by the oil price, and looking forward to the immediate future challenges remain. We hope this Annual Review will help you navigate those challenges and if you have any queries about it, please do not hesitate to contact us.