The world is in the middle of a global health crisis. This has resulted in significant adverse conditions for businesses around the globe. One of the most significant consequences for the oil and gas sector is the triggering of an oil price war following disagreements about production cuts amidst the significant decline in the demand for oil caused by the COVID-19 pandemic. This has seen oil prices plummet to the lowest they have been since 2002.
Oil and gas companies need to navigate through unprecedented challenges on contractual, operational, compliance, regulatory, transportation (including maritime), labour relations and taxation issues caused by the COVID-19 Pandemic. We set out below a guide for contract administration during these challenging times. In a subsequent bulletin, we will address the key regulatory issues.