Perception of contractual risk allocation in the oil and gas contracts in Malaysia

Wan Zahari, Wan Mohd Zulhafiz (2018) Perception of contractual risk allocation in the oil and gas contracts in Malaysia. International Journal of Trade and Global Markets, 11 (1-2). pp. 127-137. ISSN 1742-7541 E-ISSN 1742-755X

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Abstract

Oil and gas projects are risky undertakings, which may cause severe damages to property and the environment, not to mention, personal injury and death to personnel. Contractual provision such as an indemnity and mutual hold harmless clause is used as a tool in allocating the risks. However, as a consequence of the private and government litigation arising from the Macondo oil spill in the Gulf of Mexico in 2010, evidence suggests that operators generally are seeking to modify the established approach to liability allocation through individual contract negotiations with contractors. This scenario has significant and potentially adverse financial implications for the contractors and for the long-term sustainability of the industry. An empirical study was conducted to investigate the issues and problems with regard to contractual risk allocation in oilfield service contracts in Malaysia. The methodology employed in this paper will essentially be a combination of literature review and qualitative study.

Item Type:	Article (Journal)
Additional Information:	7704/64481
Uncontrolled Keywords:	contract law; oil and gas law; oilfield service contracts; risk allocation; empirical study; unfair contract terms; operator; contractor; standard form contracts; Macondo case; Malaysia
Subjects:	K Law > K Law (General) K Law > KPG Malaysia T Technology > TP Chemical technology > TP315 Fuel
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Ahmad Ibrahim Kulliyyah of Laws > Department of Civil Law
Depositing User:	Dr. Wan Mohd Zulhafiz Wan Zahari
Date Deposited:	17 Jul 2018 15:10
Last Modified:	17 Jul 2018 15:10
URI:	http://irep.iium.edu.my/id/eprint/64481

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