Turbulent times shine a light on imperfect contract structures

The pandemic provides an opportunity for a significant reset of contract structures

Extreme price movements and Covid-19-related issues have put considerable stress on contracts that work well under normal circumstances. It has also highlighted issues around indexation that were never really ideal. The question for the future is the extent to which lessons can be factored into the drafting of future legal agreements, according to the panellists at the PE Live 3 webinar. A lot of the focus in contract development in recent years has been around enhancing optionality and flexibility. “We have seen a gradual shift towards a more flexible long-term LNG structure,” says Richard Nelson, partner at law firm King & Spalding’s energy practice. “It may be that post-Covid-19 we se