LAMM20 - OGCL The state of Elysium has just introduced and initiated a new national policy which focuses on offshore oil and gas exploration and exploitation.

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  1. The state of Elysium has just introduced and initiated a new national policy which focuses on offshore oil and gas exploration and exploitation. They are seeking advice from you on potential liability regimes for offshore oil pollution damage and ask you to write a report on the effectiveness and practicality of the Oil Pollution Liability Agreement, or of potentially expanding the Civil Liability Convention 1992 to include offshore oil platforms and FPSOs. Please provide the report.
  2. A client of yours owns an LNG FPSO which it plans to make available to the owner of an LNG production platform, next to which the FPSO will be anchored. Advise the client what liabilities it may incur, and how, contractually or otherwise, it may eliminate or reduce those liabilities.
  3. A well drafted force majeure clause is particularly relevant in the oil and gas industry, especially when the contract is drafted under English law and seeks to mitigate the effects of the doctrine of frustration. Helios Enterprises have asked you to review the following force majeure clause, found within their oil sales agreement, and offer advice on issues they might face within the context of a pandemic similar to Covid-19 and in the context of sanctions imposed on the importing state.


"Force Majeure" means any circumstances which are beyond the reasonable control of a Party and which could not have been avoided by reasonable diligence on its part provided always that a lack of funds shall not constitute Force Majeure;


The obligations of a Party hereunder, other than the obligations to make payments of money, shall be suspended during the period and to the extent that such a Party is prevented from complying therewith by reason of Force Majeure.  In such event such Party shall as soon as reasonably possible give notice of such suspension together with full particulars including the likely duration thereof and as soon as reasonably possible shall resume performance of such obligations and shall so notify the other Parties.

Please provide this advice in the form of a report.

Any other topic approved by the Module Leader.


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