“A go-to sector doyen for the most complex energy disputes, he really has seen it all and is a real star of the best kind.” (Legal 500, 2022)
“Deservedly very popular for energy disputes. He has encyclopaedic knowledge of case law and is an effective, charming advocate.” (Chambers UK, 2021)
“He is a proper brainbox! His ability to second-guess what a tribunal will decide is frankly eerie.” (...) “He remains brilliant. His cross-examination is excruciatingly superb.” (Chambers UK, 2020)
“Always superb – a brilliant lawyer and cross-examiner who hones in on the key issues with amazing focus.” (Legal 500, 2020)
“Brilliant and user-friendly, he is a stunning advocate and a top-level academic able to understand the most complex of expert evidence.” (Legal 500 Asia Pacific, 2019)
“Simon is just brilliant at conveying the meaning of agreements and making complex things simple and persuasive.” (...) “He’s a very fluent advocate and a very good cross-examiner.” (Chambers UK, 2019)
Overview
Simon Rainey has a strong reputation as one of the foremost practitioners in the fields of energy and natural resources and related offshore construction. He has advised and appeared as counsel in relation to almost every aspect of the industry, upstream to downstream, and has represented or advised almost all of the major players and oil majors in the sector.
He is ranked by Chambers UK in Band 1 for Energy & Natural Resources, described as “a strong commercial silk”, and is described by Legal 500 as “always superb”.
By way of example, he has been involved in cases concerning:
- Oil and gas drilling and exploration projects, both in terms of construction and infrastructure and joint ventures;
- Long term gas sale and purchase / take or pay agreements and gas pricing issues;
- A broad variety of issues under oil and gas production and Transportation and Processing Agreements;
- Oilfield and boundary determination and redetermination and associated issues as to expert determinations and challenges to such determinations;
- A wide range of disputes regarding Joint Operating Agreements, both North Sea and elsewhere;
- Offshore and onshore construction projects covering virtually every species of oil and gas platform, rig - fixed or floating (such as the new Grupo R 6th generation and DSME / Songa Offshore North Sea DP3 semi-subs), FPSO, offshore vessel and sub-sea installation and
- Cases at the cutting edge of energy technology: contract and liability issues involving wind farms, new generation oil rigs, “gas-to-liquid” technology and the Yamal LNG project are recent examples.
He has considerable expertise in cases involving casualties due to failures of equipment or negligent operation and the allocation of responsibility in complex factual and technical situations in the light of equally complex forms of “knock-for-knock” provisions, such as the collapse of the Gazprom jack-up rig “Ekha” in the Bay of Bengal and of the Saipem jack-up rig “Perro Negro ” in the Gulf of Gambia, and the handling of the long-running multi-party litigation to which such events give rise (see e.g. Seadrill v. OAO Gazprom [2010] 1 Lloyd’s Rep. 543 and [2011] 1 All E.R. (Comm) 1077).
His longstanding pre-eminence in commodities and international trade and oil trading disputes makes him in demand for contractual disputes relating to energy products and energy generation.
He is a frequent speaker on industry topics and contractual issues, e.g. at Oil & Gas UK seminars, and is the author of the leading text on marine offshore contracts: “The Law of Tug and Tow and Offshore Contracts” (Informa, 4th Edn, 2019) and co-author of “Offshore Contracts and Liabilities” (Informa, 2015: chapter on offshore construction project mutual indemnities). He is currently writing a commentary on the new offshore industry decommissioning form (Dismantlecon).
He has performed a large number of expert determinations under industry contracts, especially on North Sea matters.
Current and recent examples of his work:
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Represented a major Oil and energy company in a dispute concerning the repayment provisions arising of the share sale and purchase agreement in a US$2bn purchase. US$100m dispute involving a pitched battle on the complex share sale contract provisions as well as a full trial seeking the rectification of the contract based on discussions between principals.
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Representing major operator offshore oil fields in a US$ 150M Commercial Court claim against a specialist oil industry manufacturer of drilling tubings in relation to widespread defects in tubing which led to the emergency closures with massive losses. The claim is typical of the highly technical drilling and oilfield expert issues which Simon is well-known for his expertise, and for the complex mesh of interlocking contracts (production agreement; joint operating agreement, joint venture) which have to be unravelled to identify the proper basis of claiming the huge losses.
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Daewoo Shipbuilding and Marine Engineering Co Ltd v Songa Offshore Equinox Ltd and Transocean [2020] EWHC 2353 (TCC) - represented buyers in major new generation rig dispute worth $900 million.
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UNCITRAL Arbitration: acting for an oil major against a natural gas producer. Interpretation of a Gas Price and Formula provision contained in the Gas Sale and Purchase Contract and how to approach (a) the construction of the gas price change provision and (b) how to evidence the matters required for the gas pricing clauses to be triggered. These are always highly complex and specialised issue on which the profitability of a long-term contract typically 10 to 20 years will depend.
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Crescent Petroleum v National Iranian Oil Corporation (No. 1 and now No. 2). Co-counsel for NIOC in a long-running arbitration taking place at the Permanent Court of Arbitration in the Hague concerning a claim by Crescent for US$ 13 billion under a long term gas sale and purchase agreement. Issues concerning gas pricing, pipeline and infrastructure construction and capacities.
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Lead counsel for the world’s leading oil majors in US$340 million HKIAC arbitration dispute with Far East importer of liquefied natural gas under a 30 year LNG supply contract with complex questions of construction as to the operation of an LNG sale and purchase agreement and involving allegations of wilful misconduct and difficult gas pricing and gas availability issues.
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Teesside Gas Transportation Ltd v CATS North Sea Ltd [2019] EWHC 1220 (Comm): Counsel for Teesside in dispute arising under a capacity reservation and transportation agreement (CRTA) for capacity in the North Sea CATS gas pipeline with issues including correct allocation methodologies, treatment of expenditure and implied contractual good faith. Raised fundamental issues as to the allocation methodology with big knock-on effects for the gas industry last considered in Amoco v Teesside [2001] UKHL 18.
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DSME v Songa Offshore [2018] EWHC 538 (Comm). Counsel for former Statoil related entity Songa Offshore (now taken over by Transocean) in highly publicised and controversial dispute with offshore industry specialist DSME in dispute concerning (a) the building of three new state of the art North Sea exploration semi-submersible drilling rigs (known as the new Category DP3s) and (b) allegations of fundamental design failures by DSME which made the rigs too heavy and unsuitable for use. The dispute was worth US$850 million over the three drilling rigs. Successful preliminary issue on DSME’s design responsibility leading to the dismissal of DSME’s claim has given rise to various satellite challenges: see e.g. an unsuccessful appeal [2018] EWHC 538 (Comm) and further proceedings in the TCC (on appeal from a second award dismissing an application by DSME to amend): December 2019.
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Premier Oil v Dana Petroleum. Counsel for Dana in dispute arising under a series of joint operating agreements relating to various North Sea oil licences. The dispute concerned whether or not Dana, who had an interest in the various licences, was liable to the Claimant, the operator of those licences, for expenses incurred by way of transition and integration costs, as a result of the Claimant having taken over the previous operator.
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Vitol E&P Ltd v New Age (African Global Energy) Ltd [2018] EWHC 1580 (Comm): Counsel for Vitol in dispute against a major West African energy and oil producer relating to complex US$150 million financing package developed by Vitol. Issues involved novel questions relating to the rectification of a written contract in the light of alleged bad faith ‘standing by’ by one party in oral negotiations and the use of financing side letters. The case turned on the successful cross-examination of New Age’s CEO by Simon.
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Transocean Drilling v Repsol Sinopec: Counsel for Repsol Sinopec (formerly Talisman) in a US$90M dispute concerning interrupted drilling and a collapsed drilling well in the North Sea (the Seagull field) and the financial fallout under a long term hire of a Transocean drilling unit. Complex technical issues and contractual issues as to industry terms “Redrill Rate” and “Fishing”.
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Crestar Resources v Newton Energy: Counsel for Newton Energy in a complex joint venture / cooperation agreement dispute with Crestar Energy (the energy group headed by the colourful Mr Shefsky) XXX arising out of a series of agreements for the development of new oil field block in Nigeria. Issues involve breach of warranties given in the agreement (on which Simon is a sector expert: see Idemitsu Corp v Sumitomo Corp [2016] EWHC 1909 (Comm) and bad faith exercise of contractual options.
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Statoil v Chevron, Petrobras and others (Awards 2016 and 2018): Co-counsel for Statoil, the Norwegian energy major, in a complex and multi-phase dispute regarding redetermination of shares on oil field production in Nigeria in connection with the new Agbami field. Contractual issues relating to status of and availability of challenge to a final and binding Expert Determination shifting the allocation of sub-sea oil fields form one oil major group to another etc.
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Counsel for major North Sea oil production and development player in long running and dispute with offshore industry specialist in dispute concerning (a) the funding and acquisition arrangements of participants’ shares in a new North Sea field and (b) allied to this, alleged breaches by as to the modification and engineering work to convert and construct a new FPSO for this field
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Counsel for leading subsea contractor in relation to dispute with major submarine energy network development contractor under a marine installation contract for the installation, burial and separate shore end landings of energy lines on the Quintillion Subsea Project offshore Alaska. The biggest offshore energy project ever carried out in Alaska and involving revolutionary new cable laying / fibre optic and associated technology.
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Counsel for one of the leaders in wind farm construction, in dispute with major offshore construction company in dispute relating to a punch through of an offshore installation unit operating in the construction of the Robin Rigg offshore wind farm field. One of the first cases involving a UK wind farm and the subsea geology requirements for wind turbine monopoles and who bears responsibility for seabed faults.
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Counsel for substantial offshore operator in Singapore/Far East in relation to dispute concerning damage to a major Far East country’s oil pipeline during a major construction project extending the field. Claims in excess of US$500M which are sought to be passed on under standard forms of offshore contracts.
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Counsel for one of the world’s largest operator of “Gas to Liquid” plants recovering hydrocarbon fuel products from natural gas in dispute with manufacturer of the patented technology for synthesis gas.
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Counsel for Grupo R in relation to a dispute concerning the US$ 800 million new generation oil drilling rig "LA MURALLA IV", one of the biggest new rigs in the world. Novel and complex technical issues of interest to the drilling industry and interpretation of specification for such rigs.