BALOGUNHAROLD

Case 08Gas infrastructure in Nigeria

The commercial agreements of the East–West Offshore Gas Gathering System.

Offshore gas infrastructure depends on the agreements that move gas, and money, through it. The work covered the commercial agreements underpinning the East–West Offshore Gas Gathering System (EWOGGS).

Client
Confidential
Sector
Offshore gas infrastructure
Practice
Energy & Natural Resources
Jurisdiction
Nigeria

The brief

The East–West Offshore Gas Gathering System (EWOGGS) is designed to gather gas from offshore fields and deliver it onshore for domestic use and processing. A project of this kind rests on a suite of interlocking commercial agreements between producers, the system operator and offtakers.

The client required advice on those agreements and on how they allocate commercial and operational risk between the parties.

Our advice

  1. 01

    Agreement review

    Reviewing the commercial agreements for the project.

  2. 02

    Risk allocation

    Advising on how volume, price, operational and regulatory risk is allocated between the parties.

  3. 03

    Negotiation support

    Supporting the client in negotiating the agreements’ commercial terms.

Outcome

The client proceeded on commercial agreements whose risks it understood, and had negotiated.