ON THE HORIZON 2026 | An Evolving World

• Published date: 09 February 2026
• Law Firm: SANDS Advokatfirma
• Author: Hayley Broome and Max Lemanski

Geopolitical risks in offshore projects

The last few years have seen significant political turmoil and conflict across the globe and recent events indicate that shows no sign of slowing down. Whilst governments and international organisations battle with the immediate and obvious impact of conflict and political instability, the international nature of conducting business in modern times means that the impact of significant geopolitical events is wide ranging. In this article, we take a look from a contractual perspective at the impact that geopolitical instability can have on offshore energy projects.

Introduction

The offshore energy industry is particularly exposed to the volatile nature of international politics and emerging conflicts because the jurisdictions for offshore energy projects are dictated by the location and availability of natural resources (such as oil and gas fields under the seabed or areas of the ocean that are naturally suitable for building offshore windfarms). This means that in offshore energy projects the parties also have to consider the risk of operating out of a jurisdiction that, for example, may be less politically stable, and with less well-established laws, infrastructure and tax regimes. As a result, the contractors for offshore projects must adequately address these potential risks. Otherwise, the parties involved may be left in a difficult position if the jurisdiction they are operating in becomes the subject of significant political instability or conflict.

Risks posed by political instability or conflic

Not every jurisdiction is as developed or as politically stable as others. There is therefore a risk that the jurisdiction is...