ARTICLE · 04 NOVEMBER 2009

Shell Applies For Full Exemption For UK E&P Sector From Competitive Tendering Rules

CMS Cameron McKenna Nabarro Olswang

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In July this year we reported that NAM, the biggest oil and gas operator in the Netherlands had obtained from the European Commission a full exemption from the public procurement rules, which require contracts to be put out for competitive tender, in relation to oil and gas exploration and production activities in the Netherlands.

United KingdomGovernment, Public Sector

Susan Hankey

Judith Aldersey-Williams

In July this year we reported that NAM, the biggest oil and gas operator in the Netherlands had obtained from the European Commission a full exemption from the public procurement rules, which require contracts to be put out for competitive tender, in relation to oil and gas exploration and production activities in the Netherlands. To see our original report click here.

At the time we speculated whether this might prompt a similar application in relation to the UK and such an application has now been made by Shell.

Oil and gas companies fall within the scope of an EU directive (the "Utilities Directive") aimed at strengthening the single European market for goods and services. Companies with licences to engage in oil and gas exploration and production are obliged to comply with certain rules requiring competitive tenders and non-discriminatory treatment of bidders, but have a derogation from the more detailed procedures for competitive tendering which apply to the

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