Introduction
A series of geopolitical and market factors have driven volatility in the oil price and exerted enormous downward pressure on profitability across the sector. This has resulted in widespread job losses and significant cuts in current and future projects. Navigating this new operational landscape presents a variety of challenges – but also potential opportunities – for which businesses in the sector need to be well-prepared. The purpose of this report is to publish the results of our recent global survey of the oil & gas industry and to share with you our recommendations on what can be done from a legal perspective to meet the challenges presented by the prolonged low oil price. Our aimwas to: – – Determine what the global trends, challenges and concerns are in light of the low oil price and continuing financial pressures this is exerting at all levels – – Identify our ‘legal tips’ which will enable businesses to address decision making in a proactive rather than reactive manner – – Identify the positive business opportunities which have arisen as a result of the current market conditions Our survey was sent to a broad cross-section of senior in-house counsel, commercial and contracts managers and senior executives amongst others. Respondents ranged fromNOCs, IOCs and contractors to financiers and traders based in key oil & gas jurisdictions worldwide. Within this report, we take a practical look at how to deal with the key legal issues businesses are facing. In particular, we focus on opportunities for increased M&A activity; the potential for more disputes and litigation to occur; and the very real possibility of business distress becoming business failure. Whilst many of the report conclusions are not surprising, what we do wish to stress is that there is much that can be done now to take advantage of business opportunities, and to avoid many of the legal pitfalls which might arise as a result of the current market. Should you require any further information on the findings contained in this report, please do not hesitate to contact us. Oil & Gas Team Clyde & Co
David Leckie Partner, London T: +44 (0)20 7876 4758 E: david.leckie@clydeco.com
Philip Mace Partner, London T: +44 (0)20 7876 4208 E: philip.mace@clydeco.com
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