As the offshore industry begins to acclimatise itself to the coronavirus pandemic, the initial flurry of issues relating to force majeure have begun to lessen, revealing several more complex legal and practical problems that require careful consideration.
Projects are being delayed or postponed indefinitely and companies along the supply chain are facing substantial difficulties in performance. Companies are beginning to report offshore workers with confirmed cases of COVID-19 and supply bottlenecks are already becoming apparent. This situation is compounded by the existing problems being faced by the industry, not least the collapse in the price of oil and its impact on the global economy.
However, this does not mean things are in lockdown. Work is continuing on many fronts, adapting as necessary to the rapidly changing situation, and new projects are being negotiated and agreed. Following discussions with a number of individuals currently working in the sector, we investigate some of their main practical and legal concerns and provide our commentary upon them.
Excerpted from Offshore Energy Today. To read the full article, click here.