The following Energy guidance note Produced in partnership with Giulia Carloni provides comprehensive and up to date legal information covering:
In common with mergers and acquisitions (M&A) transactions generally, prior to executing an acquisition in the context of the oil and gas sector, a buyer will want to ensure that it has undertaken satisfactory due diligence on the relevant assets (and/or entity in the event of a share purchase). Any relevant findings will provide the buyer with the opportunity to negotiate certain specific warranties and/or indemnities. However, the nature of the assets being acquired in the oil and gas sector and the business environment which applies means that there are a number of sector-specific areas of due diligence. This Practice Note includes particular focus on these sector-specific areas. For content on M&A transactions more generally, see: Due diligence and disclosure (share purchase)—overview and Due diligence and disclosure (asset purchase)—overview.
The key documents typically encountered at the early stage of the due diligence process are as follows:
a confidentiality agreement
an information memorandum; and
a first draft of the acquisition agreement provided by the seller
The due diligence process usually begins with the seller issuing a ‘teaser’ in respect of the oil and gas transaction. This document may vary but it usually contains the following snapshot information:
maps/acreage of the area in which the relevant assets are located
production data in respect of the oil or gas being
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234