Transportation—UK contractual matrix

The following Energy practice note provides comprehensive and up to date legal information covering:

  • Transportation—UK contractual matrix
  • Pre-transportation contracts
  • Transportation contracts
  • Post-transportation contracts
  • Contracts for owners of a pipeline or ‘Transporter’

Transportation—UK contractual matrix

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.

Pre-transportation contracts

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):

  1. 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

  2. Study Agreements—this agreement provides for the initial study to tie-in the Shipper’s field to the pipeline

  3. 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

  4. 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

  5. Construction and Tie-in Agreement (CTIA)—the CTIA regulates who will coordinate and execute the tie-in of the field to the pipeline. In addition, it will cover matters such as access to

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