Clifford Chance

Reviewing knock for knock indemnities: Risk allocation in maritime and offshore oil and gas contracts

15 October 2015

Participants in the maritime and offshore oil and gas sectors operate in a unique environment, characterised by inherently hazardous conditions, high financial stakes and the potential for catastrophic consequences if things go awry.  Knock for knock clauses have become industry standard in those sectors and are a fundamental tool in the management of those risks.

The fifth anniversary of the Deepwater Horizon incident is a timely reminder of the benefits of the consensual risk allocation mechanism.

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