Following a number of high-profile investments by private equity interests in North Sea infrastructure, this article by David Foxton QC and David Davies published in the International Energy Law Review  I.E.L.R. 55 considers the legal obstacles which the terms of the Joint Operating Agreement regulating the relationship of the co-owners to an asset may place on such transactions. These include rights of pre-emption which may arise on any attempt by an original participant to dispose of its interest; the difficulties when the transfer is premised on the private equity interests assuming the position of operator; the issues which may arise when contractual definitions assume an interest of the co-owners in associated oil and gas fields or infrastructure which the investing entity does not meet; and it looks at the assurances which the remaining co-owners may be entitled to seek as a condition of consenting to the transfer. Read the article in full here.
This material was first published by Thomson Reuters, trading as Sweet & Maxwell, 5 Canada Square, Canary Wharf, London E14 5AQ, in the International Energy Law Review as “Legal Issues Concerning Private Equity Investment in Jointly Owned North Sea Midstream Infrastructure”  I.E.L.R. 155-161 and is reproduced by agreement with the publishers. For further details of International Energy Law Review, please see the publishers’ website: http://www.sweetandmaxwell.co.uk.