The following Energy guidance note provides comprehensive and up to date legal information covering:
Pipeline Transportation on the United Kingdom Continental Shelf (UKCS) consists of several key pipelines that are owned and operated by separate and distinct joint ventures (see Practice Note: Transportation—transportation pipelines and terminals in the UKCS). As such, each transportation system has its own commercial terms and contractual structure. However, this practice provides a generic overview of the key contracts that may need to be entered into by a petroleum Shipper, as well of some of the Transporters key contractual arrangements.
Prior to entering into a Transportation Agreement, a Shipper may look to enter into some or all of the below agreements (depending on the circumstances):
Confidentiality Agreement—this should cover discussions between the Shipper and Transporter relating to any indicative terms and/or heads of terms that are agreed between the parties
Study Agreements—this agreement provides for the initial study to tie-in the Shipper’s field to the pipeline
Front End Engineering Agreements (FEED Agreements)—used for preliminary engineering for the tie-in. Often this will be conducted in-house by the larger operators
Design Contract—this will be used to determine the design that will be used for the construction and tie-in of the field to the pipeline
Construction and Tie-in Agreement (CTIA)—the CTIA regulates who will coordinate and execute the tie-in of the field to the pipeline. In
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