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Energy

The considerable amount of capital required for investments in the energy industry, the high risk activities associated with it and generally the distinctive character and complexities around it, make an expert legal advice paramount. A.I. Kitsios LLC provides advice on every aspect regarding the oil and gas industry and on any issue around renewable energy. We work with proficiency and fidelity, by identifying the issues in question and applying our knowledge and expertise to the particular facts of each case and the distinctive characteristics of each client.

Oil and Gas

The Oil and Gas industry value chain starts with exploration and ends with products sold to consumers. Oil and Gas operations are highly regulated from international, regional and national legal instruments and as a result, this makes the work for stakeholders risky and very sophisticated. In addition, it is one of the most complex and largest global industries making a specialised and focused legal advice more than necessary to prospective investors.

We undertake work for NOCs (National Oil Companies), IOCs (International Oil Companies) and Host Governments, Contractors, equity and debt funders on every business segment in the value chain of the oil and gas industry, upstream (exploration, development and production, enhanced recovery), midstream (trading, transportation and storage) and downstream (refining and marketing).

More specifically, our work includes but is not limited to the following:

  • Advice on the legal and commercial issues in gaining access to oil and gas reserves. Bidding and negotiating, including drafting of petroleum arrangements like Concessions, Service Contracts and PSCs (Production Sharing Contracts - the contractual regime that Republic of Cyprus has adopted) is also provided by the Energy Department. Negotiation of petroleum arrangements, includes grant of rights and title, profit sharing (profit oil, cost oil, R-factor etc.), dispute resolution clause, taxation, surface fees, liability and insurance.
  • Compliance at the beginning and through the lifetime of the project with regulatory requirements, laws, governmental authorisations and permits, approvals and consents by other relevant authorities regarding financial requirements, the protection of the environment, health, safety and so on.
  • Negotiating and drafting of oil and gas contracts and provision of a strategic advice on development and investment of oil and gas projects. This includes but is not limited to Farm-in Agreements, Joint Development  and Unitisation Agreements, Joint Operating Agreements, Infrastructure Transactions and Service Contracts (Construction, Marine Construction, Drilling and Well Service Contracts, Marine Offshore Services, etc.).
  • Mergers and Acquisitions: We carry out due diligence test, provide advice on Competition, Tax and Finance issues, represent clients before state regulatory agencies to obtain approvals concerning any issue concerning restructuring, mergers and acquisitions in the oil and gas industry. Our experts’ advice is formulated in order to achieve commercial, tax and strategic objectives.
  • Oil and Gas Disputes (Negotiation, Mediation, Expert Determination, International Arbitration and Litigation).
  • Oil and Gas Trading, sale, purchase and distribution.

Renewable Energy

We provide advice on a full range of issues regarding renewable energy, from the very beginning and through the entire life of renewable energy projects, covering among others:

  • Advice on government incentives
  • Construction and financing of projects
  • Applications, planning consents and permissions from the relevant governmental and local authorities
  • Negotiation, drafting and finalisation of Contracts
  • Decommissioning of RE installations
  • Dispute resolution

Dispute Resolution in Oil and Gas Contracting

Various types of disputes arise on every business segment in the value chain of the oil and gas industry; engineering and construction disputes, contract performance, material and equipment disputes, cost overruns, injuries and fatalities, insurance claims, employment issues, offshore and onshore pollution. Oil and gas industry players want things to go fast, efficient and inconspicuously. This, in combination with the distinctive nature of the oil and gas industry and the complexities created in dispute resolution of oil and gas contracting, makes the area even more sophisticated. A.I. Kitsios LLC Energy Department, can provide you with a clear-cut advice and/or represent you and handle with success any issue that may arise.

Advice and/or representation before Litigation and any Dispute Resolution Process

We provide advice in various Oil and Gas Disputes and/or represent clients before domestic and cross-border litigation and any other dispute resolution process including Mediation, Expert Determination and International Arbitration (ICC, LCIA, ICSID, etc.) and the consensual Negotiation.

Recognition and Enforcement

The resolution of a dispute is not in practice the end, or the solution to the real problem. A winning party may hold a judgment or an arbitral award which, until its enforcement and execution in the jurisdiction where the other party has its assets, has no practical effect. Quick and cautious steps need to be taken to enforce and execute such a judgment or an award as the case may be, to avoid turning it into a 'piece of paper' without practical importance.

Hence, following an oil and gas dispute resolution, enforcement of both domestic and foreign negotiated outcomes, expert determinations, arbitral awards and judgments come into play. We have the expertise to advise and represent you on any issue regarding the enforcement and execution of negotiated outcomes, expert determinations, arbitral awards and judgments in Cyprus, either domestic or foreign.

Dispute Resolution Agreements

A dispute resolution clause in oil and gas agreements is a far more complicated clause than a layman thinks it to be and its importance should never be underestimated. Drafting such clauses especially in oil and gas agreements, is an exceptionally sophisticated practice. Hence, an expert in the area, is required to put on its best efforts and expertise to draft an ideal clause.

While drafting a dispute resolution clause, a drafter has to consider thousands of issues before using every single word, ranging from the type of the contract is working on, the type of dispute that may arise (state to state, state to company, company to company or individual to company –employment disputes-) to foreign jurisdiction issues -the rules, statutes and case law in the area and enforcement mechanisms in place.

A poorly drafted dispute resolution clause in practice, creates further disputes between the parties and potentially dangers that cannot be predicted even by the most experienced lawyers in the area, which may ultimately cause irreparable catastrophic damages to the contracting parties.

We have the expertise to combine commercial and legal considerations in order to draft as far as possible an ideal dispute resolution clause which form an integral part of oil and gas contracts.

 



Press Room

Date Title Download
1 Nov 2013 Hydrocarbons (Prospection, Exploration, and Exploitation) Law 2007, amendment EN | РУ | 中文
June 2013 A comparison of the Royalty Tax System and the Contractual System EN | РУ | 中文

 

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