Pre-emption clauses have long been a topic of discussion in the area of UK upstream oil and gas agreements. They are seen as a commercial barrier to activity and development on the UK Continental Shelf. Caroline Kehoe, a partner in Herbert Smith’s London litigation practice and Nicola Foate, a senior assistant in the firm’s Energy Group take a look at the attention they have recently attracted from PILOT and the DTI who have undertaken to reform industry behaviour with a view to eliminating practices which can discourage activity on the UKCS.
What is PILOT?
PILOT is the successor body to the Oil and Gas Industry Task Force, which was established in January 2000 with the objective of securing the long-term future of the oil and gas industry in the UK. PILOT is made up of 23 key government representatives and recognised leaders from the industry.
