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Oil Rigs and Pipelines

Introduction

The key structures of the oil and gas industry production processes, the rigs and pipelines, whether offshore or onshore, bulk large in disputes arising in those industries. The scale of the structures, their criticality to multi-billion dollar production, their technical complexity and their exposure to some of the world’s most hostile environments help to explain why these disputes occur so often. Resolving the disputes, by negotiation, by mediation or more formal techniques such as arbitration and litigation, requires professional advice which embodies not only the best legal expertise but also a high degree of understanding of the oil and gas industries, their contracts and their operations. Such expertise can only come from working with oil and gas industry professionals and learning from them; in short, from experience.

The following recent examples show the breadth and depth of Keating Chambers’ experience in handling disputes relating to oil and gas drilling facilities and pipelines. The work undertaken by members of Chambers is chiefly advice and advocacy in arbitration and other proceedings and appointment as arbitrator or other tribunal member.

Advice and Advocacy

  • Representing a multi-national oil company in Brunei in a dispute concerning fabrication of oil rig platforms for erection in the South China Sea.

  • Advising an international contractor from Latin America on a claim against a government entity arising from the design, fabrication and construction of an oil pipe-line, pumping stations, associated communication systems and a marine terminal in the Sudan.

  • Appearing as advocate in arbitration and litigation involving an oil and gas floating production facility in the North Sea.

  • Advising a Chinese construction company on the merits of claims arising out of the design and construction of an oil pipe-line in East Africa.

  • Advising a Korean contractor defending a US$200 million delay claim arising  from construction of two oil rigs and on the contractor’s US$500 million claim in a London-based arbitration.

  • Appearing in a trial dealing with the decommissioning and recovery of a North Sea platform.

  • Representing a large international contractor in an ICC arbitration relating to a $multi-million dispute concerning an oil pipe-line in North Africa.

  • Appearing as counsel for a contractor in the Commercial Court in ongoing litigation with the Brazilian State oil company regarding the construction of an oil rig in the South Pacific.

  • Appearing as counsel in the Technology and Construction  Court in the reported case of Phillips Petroleum Ltd v Snamprogetti [2001] 79 Con LR 80.

Dispute Resolution Appointments

  • Appointment as Co-Arbitrator in the LCIA arbitration of a US$30 million claim arising from the manufacture, supply and installation of an oil platform in the Persian Gulf.

  • Appointment as party-appointed arbitrator of disputes arising from two high-specification oil-drilling vessels.

  • Mediation of a number of disputes relating to the loss of an oil-rig off the coast of Brazil.

Strength in depth

There are relatively few reported cases on oil and gas production facilities. However, one such case provides an illustration of Keating Chambers’ strength in depth in the field.

In DSND Subsea v Petroleum Geo Services [2000] BLR 530 in the Technology and Construction Court, a dispute had arisen from the subsea work between oil and gas production wells and a FPSO in the North Sea’s Banff Field. Arguing issues of economic duress and voidability of the contracts were the two advocacy teams representing the respective sides, comprising five counsel, all from Keating Chambers.


Further Information
For further information on how our members can assist you, please contact the Senior Clerks, John Munton and Nick Child, in the first instance, on +44(0)20 7544 2600. They and their teams of Clerks will be pleased to advise you on the member of Keating Chambers appropriate to your requirements.