ON THE HORIZON 2026 | An Evolving World

Geopolitical risks in offshore projects

The last few years have seen significant political turmoil and conflict across the globe and recent events indicate that shows no sign of slowing down. Whilst governments and international organisations battle with the immediate and obvious impact of conflict and political instability, the international nature of conducting business in modern times means that the impact of significant geopolitical events is wide ranging. In this article, we take a look from a contractual perspective at the impact that geopolitical instability can have on offshore energy projects.

Introduction

The offshore energy industry is particularly exposed to the volatile nature of international politics and emerging conflicts because the jurisdictions for offshore energy projects are dictated by the location and availability of natural resources (such as oil and gas fields under the seabed or areas of the ocean that are naturally suitable for