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ARTICLE · 26 JUNE 2020

Unqualified Rights To Terminate An Operator Are Not Qualified By Any Implied Duties

Burnet, Duckworth & Palmer LLP
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On January 17, 2020, the United Kingdom Commercial Division of the High Court of Justice held that there are no implied terms or duties that will qualify ...

CanadaEnergy and Natural Resources
Katy Josephs
Katy Josephs
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Case Comment: TAQA Bratani Ltd. et al v RockRose UKCS8 LLC

On January 17, 2020, the United Kingdom Commercial Division of the High Court of Justice held that there are no implied terms or duties that will qualify the circumstances in which a party can exercise its unqualified right to discharge an operator under a joint operating agreement. Judge Pelling QC presided over the trial and found that where contractual language clearly and unambiguously granted an unqualified right to discharge the operator, it was improper to imply terms into that contract that would qualify that right.

TAQA, JX, Spirit and Marathon were parties to numerous Joint Operating Agreements

TAQA Britani Limited, TAQA Britani LNS Limited (together, TAQA), JX Nippon Exploration and Production (UK) Limited (JX), Spirit Energy Resources Limited (Spirit, and together with TAQA and JX, the Claimants), and Marathon Oil UK LLC (Marathon), hold petroleum licenses to extract oil and gas from five

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