Apache UK Investment Ltd v Esso Exploration and Production UK Ltd

Apache UK Investment Ltd v Esso Exploration and Production UK Ltd

The obligation to submit a Proposed Plan and provide security relates to the 2021 Relevant Year, not 2020, and security is not required for the Additional Wells as the s.29 notices predated their construction and they were not intended to be established at the time of the notices.

Parties
Claimant: Apache UK Investment Limited; Defendant: Esso Exploration and Production UK Limited
Jurisdiction
England and Wales
Judgment Date
17 May 2021
Procedural Posture
Commercial Dispute / Judgment After Short Trial
Outcome
Declarations granted in favour of Apache; security to be determined by the 2021 Proposed Plan and not to include Additional Wells.
Legal Topics
Decommissioning Security, Interpretation of Contract Terms, Petroleum Act 1998, Indemnity Obligations
Commercial Law Energy Law Contract Law Decommissioning Security Interpretation of Contract Terms Petroleum Act 1998 Indemnity Obligations

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Parties

Apache UK Investment Limited

Claimant

Esso Exploration and Production UK Limited

Defendant

Procedural Posture

Commercial Dispute / Judgment After Short Trial

Legal Issues

  1. 1 Whether security should be assessed based on the 2020 or 2021 Proposed Plan under the BDSAs
  2. 2 Whether Apache is required to provide security for decommissioning of Additional Wells under the Petroleum Act 1998

Ratio Decidendi

The obligation to submit a Proposed Plan and provide security relates to the 2021 Relevant Year, not 2020, and security is not required for the Additional Wells as the s.29 notices predated their construction and they were not intended to be established at the time of the notices.

Court Disposition

Declarations granted in favour of Apache; security to be determined by the 2021 Proposed Plan and not to include Additional Wells.

Orders

  • Declarations to be agreed by counsel or ruled by the court if not agreed.