Oil & Gas JOA Defaults


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Summary: Enforcing Forfeiture Clauses after the Cavendish Square Decision

Late last year, the UK Supreme Court handed down its decision in Cavendish Square Holdings v Talal El Makdessi.

The case is highly relevant in the JOA context and, in particular, to the issue of whether JOA forfeiture clauses can be enforced.

The case is also particularly timely, as the continuing decline in oil prices has led to a spike in JOA defaults and disputes concerning the enforceability of default remedies.

In this article, we outline:

  1. the significance of the judgment for the enforcement of JOA forfeiture clauses;
  2. our considered views on how the courts are likely to approach these provisions going forward; and
  3. practical solutions to increase the prospects of successful enforcement or to avoid the need for enforcement in the first place.

Read our full article which talks about Enforcing Forfeiture Clauses after the Cavendish Square Decision in Cavendish Square Holding v Talal El Makdessi.

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