Liability for Catastrophic Risk in the Oil and Gas Industry
Article from: OGEL 2 (2013), in Risks and Responses to Risk in the Energy Sector
Introduction
This article examines the dynamics of recent attempts by operators to negotiate contracts which apportion more liability to contractors in the event of a catastrophic incident. Among the various sources of tension that have arisen in the offshore petroleum industry since the Macondo oil spill, this is probably the most acute. By "operator" is meant the party holding a licence or lease which is responsible for petroleum operations; by "contractor" is meant the party responsible for the provision of services to the operator in relation to say field operation and production (well ...