Introduction
Against the current backdrop of depressed oil prices, companies
operating in the oil and gas industry are taking measures to adapt
to a new 'normal', such as streamlining their portfolios to
focus resources on core business units or jurisdictions. That may
in turn necessitate withdrawals from certain contracts that are no
longer economically viable or profitable.
Companies wishing to bring a contractual agreement to an end
generally have two options available to them: (i) terminating in
accordance with any express contractual provisions; or (ii)
exercising a right to terminate at common law in response to a
breach that is sufficiently serious so as to be
'repudiatory'. The recent decision in Vinergy
International (PVT) Ltd v Richmond Mercantile Ltd FZC [2016]
EWHC 525 (Comm) highlights the interplay between contractual and
common law termination rights, in particular as regards whether it
is necessary to give notice of termination under a
