© Shepherd and Wedderburn LLP Oil & Gas v Offshore Renewables: Regulatory Framework & Contractual Landscape Lynne Scott 26 January 2015
2 Oil & Gas v Offshore Renewables: Regulatory Framework and Contractual Landscape Agenda ● Setting the scene ● Regulatory framework ● Contracting issues
Setting the scene in Offshore Renewables No standard contracting approach Evolving technology Uncertainty Industry needs to reduce cost Supply chain constraints 326 January 2015Oil & Gas v Offshore Renewables: Regulatory Framework and Contractual Landscape
426 January 2015Oil & Gas v Offshore Renewables: Regulatory Framework and Contractual Landscape Regulatory Framework Consenting s.36 consent Marine Licence Development Consent Order Support Mechanism ROCs Contracts for Difference Construction Construction, Design & Management Regulations 2007 Housing Grants, Construction & Regeneratio n Act 1996
526 January 2015Oil & Gas v Offshore Renewables: Regulatory Framework and Contractual Landscape Contractual landscape – procurement One contractor Single point responsibility EPC Contracting Experienced developer Integration risk Multi- contracting Collaborative environment Early supply chain involvement Alliancing
626 January 2015Oil & Gas v Offshore Renewables: Regulatory Framework and Contractual Landscape Contractual landscape – forms of contract Oil & Gas - LOGIC Onshore Wind - FIDIC Offshore Renewables
Contractual Landscape – some specific contracting issues 726 January 2015Oil & Gas v Offshore Renewables: Regulatory Framework and Contractual Landscape Limitations Liability Knock for knock Indemnities Adopted from LOGIC Weather risk Who takes risk? Ground conditions
Conclusion No standard contracting strategy Opportunity to do something new Learn lessons from other industries and adapt Market needs support to develop the supply chain Needs of investors/funders will also influence Appropriate risk allocation Clear contractual mechanisms 826 January 2015Oil & Gas v Offshore Renewables: Regulatory Framework and Contractual Landscape