Allocation of offshore risk in Malaysia: a call for the application of the Industry Mutual Hold Harmless (IMHH) deed

The contractual allocation of liabilities in the oil and gas projects is becoming an issue of paramount importance since the projects are risky ventures. The allocation of the parties’ respective shares of liability in accidents is typically carried out under standard industry contracts which have b...

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Main Author:	Wan Zahari, Wan Mohd Zulhafiz
Format:	Conference or Workshop Item
Language:	English
Published:	2017
Subjects:	K Law (General) KD England and Wales KPG Malaysia
Online Access:	http://irep.iium.edu.my/57039/ http://irep.iium.edu.my/57039/25/57039_Welcome%20to%20Asian%20Law%20Institute_complete2.pdf

id	iium-57039
recordtype	eprints
spelling	iium-570392017-05-25T08:06:29Z http://irep.iium.edu.my/57039/ Allocation of offshore risk in Malaysia: a call for the application of the Industry Mutual Hold Harmless (IMHH) deed Wan Zahari, Wan Mohd Zulhafiz K Law (General) KD England and Wales KPG Malaysia The contractual allocation of liabilities in the oil and gas projects is becoming an issue of paramount importance since the projects are risky ventures. The allocation of the parties’ respective shares of liability in accidents is typically carried out under standard industry contracts which have been established over many years. However, as a consequence of the private and government litigation arising from the Macondo oil spill in the Gulf of Mexico in 2010 as well as revised perceptions of risk exposure, evidence suggests that operators generally are seeking to modify the established approach to liability allocation through individual contract negotiations with contractors. This scenario has significant and potentially adverse financial implications for the contractors and for the long-term sustainability of the industry. Thus, there is a need to develop a legal mechanism that will achieve a fair distribution of risk between operators and contractors. This research focuses in particular upon the law of Malaysia. It aims at determining the feasibility of implementing the Industry of Mutual Hold Harmless Deed (“IMHH”) in the Malaysian oil and gas industry. Currently, the IMHH applies to the UK’s territory of the North Sea and the Irish Sea. It was created to support and effectively manage the inherent risks in offshore activities in the oil and gas industry whereby a company is considerably in a better position will protect its own people and equipment by providing an indemnification. In this regard, companies are more certain of the risks they must insure and could avoid multiple insurance policies on the same risk. However, it is important to note that some modification of the IMHH model should be made to accommodate peculiar circumstances. The methodology employed in this research will be a comparative analysis which will be carried out in a descriptive, analytic and prescriptive manner. 2017-05-19 Conference or Workshop Item NonPeerReviewed application/pdf en http://irep.iium.edu.my/57039/25/57039_Welcome%20to%20Asian%20Law%20Institute_complete2.pdf Wan Zahari, Wan Mohd Zulhafiz (2017) Allocation of offshore risk in Malaysia: a call for the application of the Industry Mutual Hold Harmless (IMHH) deed. In: 14th Asian Law Institute Conference, 18-19 May 2017, Novotel Manila Hotel. (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	K Law (General) KD England and Wales KPG Malaysia
spellingShingle	K Law (General) KD England and Wales KPG Malaysia Wan Zahari, Wan Mohd Zulhafiz Allocation of offshore risk in Malaysia: a call for the application of the Industry Mutual Hold Harmless (IMHH) deed
description	The contractual allocation of liabilities in the oil and gas projects is becoming an issue of paramount importance since the projects are risky ventures. The allocation of the parties’ respective shares of liability in accidents is typically carried out under standard industry contracts which have been established over many years. However, as a consequence of the private and government litigation arising from the Macondo oil spill in the Gulf of Mexico in 2010 as well as revised perceptions of risk exposure, evidence suggests that operators generally are seeking to modify the established approach to liability allocation through individual contract negotiations with contractors. This scenario has significant and potentially adverse financial implications for the contractors and for the long-term sustainability of the industry. Thus, there is a need to develop a legal mechanism that will achieve a fair distribution of risk between operators and contractors. This research focuses in particular upon the law of Malaysia. It aims at determining the feasibility of implementing the Industry of Mutual Hold Harmless Deed (“IMHH”) in the Malaysian oil and gas industry. Currently, the IMHH applies to the UK’s territory of the North Sea and the Irish Sea. It was created to support and effectively manage the inherent risks in offshore activities in the oil and gas industry whereby a company is considerably in a better position will protect its own people and equipment by providing an indemnification. In this regard, companies are more certain of the risks they must insure and could avoid multiple insurance policies on the same risk. However, it is important to note that some modification of the IMHH model should be made to accommodate peculiar circumstances. The methodology employed in this research will be a comparative analysis which will be carried out in a descriptive, analytic and prescriptive 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	Allocation of offshore risk in Malaysia: a call for the application of the Industry Mutual Hold Harmless (IMHH) deed
title_short	Allocation of offshore risk in Malaysia: a call for the application of the Industry Mutual Hold Harmless (IMHH) deed
title_full	Allocation of offshore risk in Malaysia: a call for the application of the Industry Mutual Hold Harmless (IMHH) deed
title_fullStr	Allocation of offshore risk in Malaysia: a call for the application of the Industry Mutual Hold Harmless (IMHH) deed
title_full_unstemmed	Allocation of offshore risk in Malaysia: a call for the application of the Industry Mutual Hold Harmless (IMHH) deed
title_sort	allocation of offshore risk in malaysia: a call for the application of the industry mutual hold harmless (imhh) deed
publishDate	2017
url	http://irep.iium.edu.my/57039/ http://irep.iium.edu.my/57039/25/57039_Welcome%20to%20Asian%20Law%20Institute_complete2.pdf
first_indexed	2023-09-18T21:20:34Z
last_indexed	2023-09-18T21:20:34Z
_version_	1777411854009630720

Allocation of offshore risk in Malaysia: a call for the application of the Industry Mutual Hold Harmless (IMHH) deed

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