Risk Allocation and Distributive Justice in the Energy Industry - by Smith I Azubuike (Hardcover)

About the Book

Brings the concept of gross negligence to the fore and highlights how distributive justice forms a better foundation for risk allocation in the offshore energy industry

Book Synopsis

This book examines the practice of risk allocation in the offshore energy industry through the public policy lens and offers a novel perspective on the concept of gross negligence in risk allocation. This perspective is founded on the proportionality element of distributive justice in burden distribution. The assessment of how mutual indemnity clauses apply as an absolute shield against liability arising from gross negligence reveals that moral hazard can result from the practice.
In the analysis, this book considers the risk allocation practice in PSC and Concession regimes and how parties' liability is determined in drilling contracts. This book considers gross negligence a sui generis risk and provides a definitional pathway for determining when gross negligence occurs and how it should apply to offshore drilling contracts. Thus, it advances an environmental sustainability approach to offshore petroleum drilling operations. This book will be useful to operators and contractors, resource-rich countries, insurance companies, practitioners, scholars, and academics interested in risk allocation in the petroleum industry.

From the Back Cover

Brings the concept of gross negligence to the fore and highlights how distributive justice forms a better foundation for risk allocation in the offshore energy industry Drawing on the momentum of the Macondo cases, this book focuses on the crucial practice of risk allocation in the energy industry. The book examines how distributive justice, public policy, and regulation can assist in allocating the risk of gross negligence and promote environmental sustainability in offshore drilling operations. It highlights the need to incentivise accident prevention practices in offshore drilling agreements by holding participants responsible for grossly negligent conduct. The book provides guiding principles and approaches that can assist contracting parties in dealing with gross negligence clauses and the court in interpreting the concept. It critically evaluates gross negligence risk as a special kind of risk, examines its unique contextual settings in jurisdictions including Nigeria, Indonesia, the USA and UK, and analyses it within the context of freedom of contract. Smith I. Azubuike is Assistant Professor in Energy Law at Durham University.

About the Author

Smith I. Azubuike is Assistant Professor in Energy Law at Durham University.