Reuters reported that the Libyan government was force majeure clause, citing sources in the community of traders of oil.
Force majeure is a clause in a contract that excuses a party from having to perform its contractual duties and acquitted him of all responsibility when there are unforeseen extraordinary events.
In Libya, there have been reports of leader Muammar Gaddafi using helicopters, warplanes and mostly unarmed demonstrators political mercenaries. The UN Security Council convened an emergency meeting on Tuesday.
It 's safe to say that in the case of an OPEC country like Libya's bombing its own citizens, the greater force energy sector is going to be an important topic for investors, said a law on energy expert who requested anonymity because of his business relationship with international oil companies.
contracts in the energy sector in Libya that would also be subject to force majeure provisions are those that combine a government-run energy company for private companies in the production of sharing and oil services. The events of force majeure is not necessary to engage directly with the parties, either. A state oil company in Libya could invoke force majeure in terms of the contractual obligation to deliver oil, and a third contract to buy oil from a joint venture in Libya could invoke force majeure, as well.
Force majeure could be invoked in a contract to make ports available for a shipping company who want to take charge of the specific lift oil from Libya or Libyan ports. A series of contractual obligations should be subjected to acts of God with the possible closure of the door, and potentially impact any party involved in the sale and shipping of oil.
During the Gulf of Mexico oil spill and the moratorium on drilling, force majeure has been employed by oil companies and gas contracts with operators rig.
One problem for investors in the event of force majeure is that companies rarely disclose contract terms. In the case of the spill in the Gulf, Anadarko Petroleum (APC) and Halliburton (HAL) has taken the unusual step of publishing contracts with BP for public review as part of the efforts of Investor Relations.
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