'Maximising Economic Recovery' of UKCS Oil and Gas - Implying Good Faith Into Joint Venture Agreements?
Article from: OGEL 3 (2022), in Joint Operating Agreements & National Oil Companies: Challenges and Dynamics
Oil and Gas operations in the UK Continental Shelf are required to follow the UK Government's strategy to maximise the economic recovery of available hydrocarbons (the "MER Strategy"). This strategy, and the actions and behaviours expected under it, can potentially cause tension with the terms of the joint operating agreements ("JOAs") under which such operations are carried out. To date there is only one case where the interplay of MERS and JOAs has been assessed (TAQA Bratani Limited and Others v. Rockrose UKCS8 LLC) but we expect that others may arise, or lead to commercial friction, ...