Advance publication
Knock for Knock Indemnities: Contract Practices and Enforceability Issues
Published 24 March 2011
Abstract
Oil and gas and construction projects are risky ventures. Injuries to personnel and severe damage to property may result in exorbitant losses to be borne by the project participants. It is in this context that the contractual allocation of liabilities between the project parties becomes an issue of paramount importance. Nowadays, it is generally accepted both by the oil and gas and construction industries that knock for knock indemnities represent an efficient model of liability distribution for construction contracts and oilfield services agreements. This paper will (i) describe the main features of the knock for knock regime and its operation within construction and oil and gas projects; (i) identify the inconsistencies between knock for knock provisions and other typical liability clauses included in oilfield services and construction agreements; and (iii) analyze the major constraints to the enforceability of knock for knock provisions under English and Texas laws. Guidelines to resolve the problems identified will also be suggested where appropriate.
Other recently published material:
-
China's Shale Gas Ambitions Encounter Severe Policy Constraints
(15 May 2013) -
Tamoil: Libya's Stagnating Business Arm
(23 April 2013) -
China-russia Energy Cooperation: Latest Steps in A Long Dance
(17 April 2013) -
Integrity and Transparency in the EU Wholesale Electricity Market - New Rules for a Better Functioning Market?
(8 April 2013) -
The Jordanian Electricity Market - A Transitory Regime
(8 April 2013)
Complete listing of Advance publication.