'Maximising Economic Recovery' of UKCS Oil and Gas - Implying Good Faith Into Joint Venture Agreements?
Published 23 August 2021
Executive Summary
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, as the full extent of this tension becomes apparent over time, most likely in respect of information sharing, dispute resolution, operatorship, work programmes, withdrawal and the rights of third parties.