To Forfeit or not to Forfeit? – Enforceability of Forfeiture Clauses in Oil and Gas Joint Operating Agreements (JOA)
By Ben Knowles and Khaled Moyeed at Clyde & Co LLP A recent arbitration award has highlighted the question of the enforceability of forfeiture provisions in oil and gas JOAs. The effect of such provisions is that a defaulting party forfeits its participating interest (“PI“) in a project on account of a default, such as…