Energy - Oil & Gas

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Recent Articles

  •  
    27/11/2024
    England and Wales

    Energy: The meaning of 'Value' and waiver of termination rights

    In URE Energy Ltd v Notting Hill Genesis [2024] EWHC 2537 (Comm), the English Commercial Court was required to determine the meaning of the word ‘value’ in a termination remedies clause. As the word is widely used in oil and gas, and power contracts the approach of the court will be of interest to energy practitioners. The decision also provides a useful insight into what events may be needed to inadvertently waive a right to terminate. FactsURE Energy Ltd (“URE”) is an energy company. Notting Hill Genesis (“NHG”) is a publicly funded charitable organisation.On...
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  •  
    08/11/2024
    United Kingdom

    Cy-près solutions: navigating contractual continuity in a post-LIBOR world

    IntroductionIn Standard Chartered PLC v Guaranty Nominees Ltd & Ors [2024] EWHC 2605 (Comm), the English Commercial Court provided a solution to the impact of the cessation of the London Interbank Offered Rate (“LIBOR”) on perpetual preference shares which provide for the payment of dividends determined by reference to that rate. The decision will be of relevance to a large number of existing contracts, which often reference LIBOR in respect of calculating interest.FactsStandard Chartered PLC (“SC”) issued USD 750m in preference shares in 2006 to raise Tier 1 capital....
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  •  
    30/10/2024
    United Kingdom

    Autumn Budget 2024 – changes to the Oil and Gas tax regime

    The UK government announced in today’s Budget that the energy profits levy (or ‘EPL’) applicable to UK oil and gas profits will be increased from its current rate of 35% to 38% from tomorrow, and the period for which the levy applies will be extended to 2030. The investment allowance available since EPL was introduced has also been removed, other than for expenditure on decarbonisation (for which it will be retained, but with the allowance reduced to 66% to maintain its existing cash value).While these changes will further increase the tax burden on the sector, also of significance...
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  •  
    28/10/2024
    United Kingdom

    De­com­mis­sion­ing Security Agreements in the UK - what you need to know

    The decommissioning of offshore oil and gas installations is a multifaceted and costly endeavour, presenting numerous legal, technical, environmental, and financial challenges. Governed by the Petroleum Act 1998 and associated regulations, the UK decommissioning regime imposes extensive liabilities on current and former owners of offshore infrastructure, as well as their affiliates. To navigate these complexities and ensure financial security for future decommissioning costs, industry practice has evolved to include Decommissioning Security Agreements (DSAs). Our latest publication delves into...
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  •  
    09/10/2024
    United Kingdom

    CMS Annual Review of developments in English oil and gas law 2024

    Welcome to the 2024 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 covers judgments/arbitral awards which will have both direct and indirect impacts on oil and gas practitioners. Significantly, most cases continue to arise as a result of the energy trilemma, requiring the need to strike a balance between energy security, affordability and sustainability. The 2024 Annual Review deals with recent case law relevant to...
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  •  
    01/10/2024
    United Kingdom

    Establishing the National Energy System Operator

    Introduction and background As of today, 1 October 2024 (“NESO Commencement Day”), Great Britain’s (“GB’s”) electricity and gas system will be planned and operated by a newly designated independent, publicly owned organisation – the National Energy System Operator Limited (“NESO”) – as part of the strategic approach to enable the Government’s target of a zero-carbon energy system by 2030.Pursuant to a decision notice (the “NESO/ELEXON Decision Notice”) issued by the Secretary of State (“SoS”) for the...
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