Price crash may fuel contract renegotiation push

A prolonged era of sustained lower oil prices could result in widespread pressure to renegotiate contracts

While customers would certainly like to secure lower prices, whether they will be able to achieve them will depend on the balance of power in negotiations. While there is not a universally successful strategy, there are certain factors that can be applied in many situations to achieve sustained advantage, according to panellists at the PE Live 3 webinar. “It very much depends on contract-by-contract, relationship-by-relationship and commercial factors,” says Wade Coriell, partner, international arbitration practice, at law firm King & Spalding. For example, in pricing for LNG cargoes “some will have very long-term relationships and be looking at things beyond an LNG SPA as well.” The sit