An empirical study on the contractual risk allocation and indemnity and hold harmless clauses in the oilfield service contracts in Malaysia

Oil and gas projects are risky undertakings, which may cause severe damage to property and the environment, not to mention, personal injury and death to personnel. Contractual provision such as an indemnity and mutual hold harmless clause is used as a tool in allocating the risks. Most oil companies...

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Main Author:	Wan Zahari, Wan Mohd Zulhafiz
Format:	Conference or Workshop Item
Language:	English
Published:	Unique Conferences Canada 2015
Subjects:	HF Commerce K Law (General) KBP1468 Social laws and legislation KBP3190 Economic law
Online Access:	http://irep.iium.edu.my/43896/ http://irep.iium.edu.my/43896/1/Paper_Proceedings_-_An_empirical_study.pdf

id	iium-43896
recordtype	eprints
spelling	iium-438962016-07-27T05:55:20Z http://irep.iium.edu.my/43896/ An empirical study on the contractual risk allocation and indemnity and hold harmless clauses in the oilfield service contracts in Malaysia Wan Zahari, Wan Mohd Zulhafiz HF Commerce K Law (General) KBP1468 Social laws and legislation KBP3190 Economic law Oil and gas projects are risky undertakings, which may cause severe damage to property and the environment, not to mention, personal injury and death to personnel. Contractual provision such as an indemnity and mutual hold harmless clause is used as a tool in allocating the risks. Most oil companies, in their task to manage the risks, seek to depart from the traditional form of risk allocation e.g. knock-for-knock indemnity regime. In this respect, there is a tendency that the oil companies will pass a greater share of the risks on to contractors. This problem could lead to financial impairment and unfairness to the contractors. An empirical study was conducted to investigate the issues and problems with regard to risk allocation provisions and indemnity and hold harmless clauses of oilfield service contracts in Malaysia. The data for the empirical study was drawn from the intensive semi-structured interviews of ten respondents from oil companies, contractors and one legal practitioner. The finding of this empirical study indicates that contractors are concerned about the one-way adversarial style of operator-contractor relationship and also that they are being allocated more contractual risks. The methodology employed in this paper will essentially be a combination of literature review and semi-structured interview, which will be carried out in a prescriptive and analytic manner. Unique Conferences Canada 2015-06 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/43896/1/Paper_Proceedings_-_An_empirical_study.pdf Wan Zahari, Wan Mohd Zulhafiz (2015) An empirical study on the contractual risk allocation and indemnity and hold harmless clauses in the oilfield service contracts in Malaysia. In: Second International Conference on Interdisciplinary Legal Studies (ICILS) 2015, 9-10 June 2015, Toronto, Canada.
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF Commerce K Law (General) KBP1468 Social laws and legislation KBP3190 Economic law
spellingShingle	HF Commerce K Law (General) KBP1468 Social laws and legislation KBP3190 Economic law Wan Zahari, Wan Mohd Zulhafiz An empirical study on the contractual risk allocation and indemnity and hold harmless clauses in the oilfield service contracts in Malaysia
description	Oil and gas projects are risky undertakings, which may cause severe damage to property and the environment, not to mention, personal injury and death to personnel. Contractual provision such as an indemnity and mutual hold harmless clause is used as a tool in allocating the risks. Most oil companies, in their task to manage the risks, seek to depart from the traditional form of risk allocation e.g. knock-for-knock indemnity regime. In this respect, there is a tendency that the oil companies will pass a greater share of the risks on to contractors. This problem could lead to financial impairment and unfairness to the contractors. An empirical study was conducted to investigate the issues and problems with regard to risk allocation provisions and indemnity and hold harmless clauses of oilfield service contracts in Malaysia. The data for the empirical study was drawn from the intensive semi-structured interviews of ten respondents from oil companies, contractors and one legal practitioner. The finding of this empirical study indicates that contractors are concerned about the one-way adversarial style of operator-contractor relationship and also that they are being allocated more contractual risks. The methodology employed in this paper will essentially be a combination of literature review and semi-structured interview, which will be carried out in a prescriptive and analytic manner.
format	Conference or Workshop Item
author	Wan Zahari, Wan Mohd Zulhafiz
author_facet	Wan Zahari, Wan Mohd Zulhafiz
author_sort	Wan Zahari, Wan Mohd Zulhafiz
title	An empirical study on the contractual risk allocation and indemnity and hold harmless clauses in the oilfield service contracts in Malaysia
title_short	An empirical study on the contractual risk allocation and indemnity and hold harmless clauses in the oilfield service contracts in Malaysia
title_full	An empirical study on the contractual risk allocation and indemnity and hold harmless clauses in the oilfield service contracts in Malaysia
title_fullStr	An empirical study on the contractual risk allocation and indemnity and hold harmless clauses in the oilfield service contracts in Malaysia
title_full_unstemmed	An empirical study on the contractual risk allocation and indemnity and hold harmless clauses in the oilfield service contracts in Malaysia
title_sort	empirical study on the contractual risk allocation and indemnity and hold harmless clauses in the oilfield service contracts in malaysia
publisher	Unique Conferences Canada
publishDate	2015
url	http://irep.iium.edu.my/43896/ http://irep.iium.edu.my/43896/1/Paper_Proceedings_-_An_empirical_study.pdf
first_indexed	2023-09-18T21:02:27Z
last_indexed	2023-09-18T21:02:27Z
_version_	1777410714352222208

An empirical study on the contractual risk allocation and indemnity and hold harmless clauses in the oilfield service contracts in Malaysia

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