Energy transactions are unusually vulnerable to things going wrong.
Markets move. Governments intervene. Ships are delayed. Financing fails. Counterparties change.
The answer is not simply a longer contract. It is a better-designed transaction.
Procedures should be pressure-tested before the parties commit: Who performs first? What must be verified? When does money move? What happens when an assumption fails?
The same discipline should be infused throughout the parties’ agreements. Risk, verification, performance and remedies should work together as a system—not as isolated clauses.
A well-drafted arbitration clause may help resolve a dispute.
A well-designed agreement may prevent one.
International Arbitration Advisors
Better Before Battle.