Energy Update - 18 June 2013

Welcome to this edition of Field Fisher Waterhouse's Energy Update. This fortnight we look at the proposed Economic Crime Bill and Ofgem's call for evidence in relation to price-reporting benchmarks and its consultation on REMIT. There are new European disclosure rules and new UK anti-tax avoidance measures, which will both affect energy companies. An independent review into oil & gas resources in the UK has just been announced. There are also developments in relation to potentially new and abundant fuel sources - shale and methane hydrate. There is recent news that oil & gas assets in West Africa may be reclaimed by the national oil company. We explore a recent Court of Appeal judgment in relation to the enforceability of a mining industry commercial contract where terms were "to be agreed" and include a wide-ranging interview with Dr. Robert Trice, CEO of Hurricane Energy PLC.

We hope you will find this of interest.

Criminal liability for energy companies that fail to prevent fraud?

On 14 June the shadow attorney general Emily Thornberry unveiled Labour's plans to combat corporate fraud. This follows an earlier announcement by the shadow home secretary of a proposed Economic Crime Bill.

The plans include:

updating the UK's laws on corporate criminal liability, and considering whether more of the proceeds of crime can be ploughed back into law enforcement The aim is to transform the UK's enforcement record on economic crime, and to create a "profit centre for the criminal justice system", similar to the US.

Click here to read more.

Ofgem considers regulating price-reporting agencies

UK energy watchdog Ofgem has issued a call for evidence to ascertain if stakeholders feel that current arrangements regarding benchmarking services for gas and electricity markets are fit for purpose or if they think that further action is necessary. The alleged manipulation of benchmarks that underpin financial transactions such as LIBOR and EURIBOR has recently been the subject of significant regulatory scrutiny. The call for evidence is open until 31 July 2013.

For Ofgem's statement click here

For our recent piece on the EC energy price-fixing probe click here

Show me the money: new European disclosure requirements announced for companies in extractive industries - including oil& gas and mining

The European Union has recently proposed new accounting and disclosure rules that will oblige European listed and other large companies in extractive industries to...