UCL Australia
Student Testimonial
"This course at UCL is one of its kind"
Events
24 April
UCL Australia Seminar Series
Wind Power in South Australia - from zero to 26 % in 10 years
Presentation by Adj A/Prof Monica Oliphant, Past President ISES and Nic Jacobson, Independent Consultant
News
Professor Stefaan Simons presented at the Annual Meeting of the Four Societies (The Nuclear Engineering Panel of the Sydney Branch of Engineers Australia, The Australian Nuclear Association, The Royal Society of New South Wales and The Australian Institute of Energy) in Sydney.
The topic of his presentation was 'Going low carbon – the Approach of the International Energy Policy Institute'.
Contact
UCL Australia
Torrens Building
220 Victoria Square
Adelaide, South Australia, 5000
Tel: +61 8 8110 9960
Fax: +61 8 8212 3039
Research at UCL Australia
UCL School of Energy and Resources
At UCL Australia we focus on solutions to real-world problems. The UCL School of Energy and Resources is addressing energy provision, primarily, but not exclusively, electricity generation.
Mullard Space Science Laboratory
The Mullard Space Science Laboratory (MSSL) is a world-leading research organisation delivering a broad science programme that is underpinned by a strong capability in space science instrumentation, space-domain engineering, space medicine, systems engineering and project management.
International Energy Policy Institute
The International Energy Policy Institute (IEPI) was created to address key policy issues in the mineral, energy and resources industries through intensive and innovative research.
Research at the IEPI
Professor Stefaan Simons
Brave New Industry: Re-Characterising Petroleum Joint Venture Risks
Matt R Lady BA, LLB (Hons)
Project submitted in partial fulfilment of the requirements for the degree of MSc (Energy and Resources), UCL School of Energy and Resources, Australia
Abstract
Effectively managing legal risk in the upstream petroleum industry requires the use of complex, precise and sometimes novel contractual arrangements. This dissertation examines two important tools of risk management in this industry: joint ventures and contractual indemnities. Part I examines the nature of the joint venture and the risks associated with this common form of business arrangement in the upstream petroleum industry. I argue that joint venture participants may be exposed to significant legal risk due to the immature development of this form of agreement in Australia. Part II considers critically the role, scope, and enforceability of contractual indemnities in upstream petroleum agreements. In sum, I argue that these essential risk management tools possess hidden dangers and may not be the panaceas to legal risk they are often thought to be. A case study of select upstream contracts is undertaken to demonstrate the hazards of over-reliance on contractual indemnities to manage legal risk and to identify methods to harden indemnities against defeasance. I conclude that contractual indemnities and joint ventures can provide significant benefits to parties to upstream petroleum projects, and, when thoughtfully drafted and executed, they serve as powerful instruments to allocate legal risk and efficiently enable participants to execute complex and capital intensive business ventures. However, as recent events have increased stakeholder scrutiny of upstream firms, there is a pressing need to understand clearly the limitations and risks of joint ventures and contractual indemnities if firms are fully to appreciate their potential liability should disaster strike. This is the goal of this dissertation.
