The Court of Appeal has dismissed an appeal against a decision interpreting the provisions of a Farm-Out Agreement for the sale of an interest in two oil production licences: Apache North Sea Limited v (1) Euroil Exploration Limited & (2) Edison S.p.A [2020] EWCA Civ 1397. Herbert Smith Freehills LLP represented the successful defendants/respondents, Euroil Exploration Limited and Edison S.p.A.

This decision serves as a reminder for parties to think carefully about the intended interplay between associated contracts and to ensure the drafting is clear as to the impact the provisions of one agreement may have in interpreting another, including the effect of any inconsistency clauses.

For more information please see this post on our Energy Notes blog.