Allocation of liability in the UKCS: the Industry Mutual Hold Harmless Scheme (IMHH)
Produced in partnership with Isla Stewart of Mathesons
Allocation of liability in the UKCS: the Industry Mutual Hold Harmless Scheme (IMHH)

The following Energy guidance note Produced in partnership with Isla Stewart of Mathesons provides comprehensive and up to date legal information covering:

  • Allocation of liability in the UKCS: the Industry Mutual Hold Harmless Scheme (IMHH)
  • Introduction
  • What is the ‘contractual gap’ that needed to be addressed?
  • Why are contractors not included in the Company’s group in LOGIC?
  • What does the IMHH apply to?
  • Exceptions to the indemnities
  • Waiver of subrogation
  • Signatories
  • Duration

Introduction

The Industry Mutual Hold Harmless Scheme (IMHH) was introduced in 2002 following an in-depth cross-industry consultation process, facilitated by Leading Oil and Gas Industry Competitiveness (LOGIC). The purpose of the IMHH’s introduction was to fill the ‘contractual gap’ among contractors where the LOGIC Standard Conditions of Contract (the ‘LOGIC Standard Conditions’) (or other contracts that use a ‘small family’ indemnity regime (see below)) were used. The LOGIC Standard Conditions are standard form conditions of contract produced by LOGIC that apply to the lifecycle of oil and gas activities, such as on- and off-shore services, well services and construction.

The aim of the IMHH was to provide a direct mutual hold harmless liability relationship among those contractors where the projects occurred in the United Kingdom Continental Shelf (UKCS), ‘irrespective of cause and notwithstanding the negligence or breach of duty (whether statutory or otherwise) of the Indemnified Party’ and apply ‘irrespective of any claim in tort, under contract or otherwise’. This reflected the same position that would be contained in the primary contracts between the operator and the first tier contractor.

The IMHH is currently in its second iteration, 1 January 2012 until 31 December 2021, and now applies to signatories operating offshore in the UKCS and Ireland’s territorial waters. A third version is expected to be published given LOGIC’s indications that