BP Gas Marketing Ltd v La Societe Sonatrach & Anor

BP Gas Marketing Ltd v La Societe Sonatrach & Anor

The figure 51.41 in clause D2.2.2(ii)(b) of the JSA is a constant, not a variable or proxy for operational Wobbe; the contract must be applied as written. No implied term can override this express provision. There was no agreement to amend the JSA at the September 2006 Steering Committee meeting, nor any breach of good faith by BP. BP's invoices, based on the contractually correct formula, are valid and enforceable.

Parties
Claimant: BP Gas Marketing Limited; First Defendant: La Societe Sonatrach; Second Defendant: Sonatrach Gas Marketing UK Limited
Jurisdiction
England and Wales
Judgment Date
07 October 2016
Procedural Posture
Commercial Contractual Dispute / Judgment After Full Trial
Outcome
Claim allowed
Legal Topics
Contract Interpretation, Implied Terms, Good Faith in Contracts, Cost Allocation in Joint Ventures, Enforcement of Contractual Invoices
Contract Law Commercial Law Contract Interpretation Implied Terms Good Faith in Contracts Cost Allocation in Joint Ventures Enforcement of Contractual Invoices

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 10 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

BP Gas Marketing Limited

Claimant

La Societe Sonatrach

First Defendant

Sonatrach Gas Marketing UK Limited

Second Defendant

Procedural Posture

Commercial Contractual Dispute / Judgment After Full Trial

Legal Issues

  1. 1 Proper construction of clause D2.2.2(ii)(b) of the Joint Shipper's Agreement (JSA) regarding nitrogen cost allocation
  2. 2 Whether terms should be implied into the JSA to allocate nitrogen costs by reference to operational Wobbe index
  3. 3 Whether the parties agreed to amend the JSA to replace 51.41 with operational Wobbe at the September 2006 Steering Committee meeting

Ratio Decidendi

The figure 51.41 in clause D2.2.2(ii)(b) of the JSA is a constant, not a variable or proxy for operational Wobbe; the contract must be applied as written. No implied term can override this express provision. There was no agreement to amend the JSA at the September 2006 Steering Committee meeting, nor any breach of good faith by BP. BP's invoices, based on the contractually correct formula, are valid and enforceable.

Court Disposition

Claim allowed

Orders

  • BP is entitled to recover £3,362,216.16 plus contractual interest at LIBOR+3% from Sonatrach.
  • BP's invoices are valid and enforceable under the JSA.