Christopher Cottrell, Winston & Strawn, gives an update on how their legal offices are handling the coronavirus pandemic and COVID-19 Shutdown.
Cottrell discusses some of the recent M&A activity in the oil and gas industry as well as the recent news of Whiting Petroleum filing for bankruptcy. Although not a bankruptcy attorney, Cottrell gives a basic overview of what type of bankruptcy Whiting has filed.
Cottrell said the M&A activity had been pented up, and reiterated that many of the companies having financial struggles still have valuable assets to optimize.
The interview dives into “force majeure” within contracts. Starting in the NBA, the phrase ” force majeure ” began making the rounds within contractual law circles are “acts of God”, “epidemic” and “pandemic” become important words in today’s world.
Recently, in response to the COVID-19-related market disruption, China’s largest natural gas and liquefied natural gas (“LNG”) importers have declared force majeure to provide relief and excuse performance from their contractual obligations. Major suppliers are contesting these assertions of force majeure.
Cottrell believes “force majeure” has the potential to become an issue in the oil and gas industry and suggested that the Texas Railroad Commission get ahead and define some terms.
The Crude Life Podcast can be heard every Monday through Thursday with a Week in Review on Friday.
Spread the word. Support the industry. Share the energy.
