WHAT WE DO / ENERGY & OFFSHORE / POLITICAL RISK

“…the team has now accrued a substantial reputation for its work in political and trade risks…'across the market, the outfit has grown and edified itself to such a degree that it is setting much of the pace'.” Chambers & Partners, 2009

The energy & offshore industry is exposed to risks relating to regional and country political environments, which may adversely affect the assets and trading relationships of a corporation operating outside its territory.

About 80% of the world’s oil and gas reserves are located in regions of the world characterised by an unstable political environment.

Typical risks often include:

  • events such as: 
        war and civil war 
        terrorism 
        political violence
  • expropriation and/or unauthorised regulatory taking
  • international embargo
  • nationalisation
  • malicious damage by political activists
  • the effects of devaluation and currency fluctuations.


Our team of lawyers, liaising as appropriate with our insurance and reinsurance specialists, can help to minimise exposure to and impact of political risk, both at the start of a venture and if the risk materialises.

Our experience includes:

  • advising on the terms in contractual documentation and licences to minimise the risk of political intervention or change of state policy such as stabilisation clauses at the initial project stage
  • advising on rights of recourse – which may be available either under the original agreements or, if there is no direct contract with the interfering government authority, via a claim in international arbitration under an investment treaty – for example, the Energy Charter or a Bilateral Investment Treaty (BIT)
  • advising on Political Risk Insurance (PRI) policy wordings, whether the PRI is provided by ECA, multilateral organisation or commercial insurers and the insurance forms part of a Contractors’ All Risks or marine and energy cover, a multi-risk package or, a stand-alone PRI or Terrorism and Political Violence policy
  • pursuing, negotiating and litigating PRI claims.