PE Live: Covid-19 may not justify force majeure
The declaring party will need to demonstrate a causal link between the pandemic and the reason it is unable to fulfil its obligations
The existence of the Covid-19 pandemic on its own is not enough for a party to declare force majeure, so the claiming party will need to demonstrate a causal link from an event to the inability to perform obligations, according to panellists on the third PE Live webcast today. While the pandemic is an “extremely serious outbreak and global in reach”, in terms of declaring force majeure “things are not entirely straightforward,” says Richard Nelson, partner, energy practice at international law firm King & Spalding. This stems from force majeure not being an abstract legal concept but one embedded in a contract. “From a legal standpoint, it only exists in a contract. Whatever rights you h
Also in this section
27 February 2026
LNG would serve as a backup supply source as domestic gas declines and the country’s energy system comes under stress during periods of low hydropower output and high energy demand
27 February 2026
The assumption that oil markets will re-route and work around sanctions is being tested, and it is the physical infrastructure that is acting as the constraint
27 February 2026
The 25th WPC Energy Congress to take place in tandem as part of a coordinated week of high-level ministerial, institutional and industry engagements
27 February 2026
The deepwater sector must be brave by fast-tracking projects and making progress to seize huge offshore opportunities and not become bogged down by capacity constraints and consolidation
