Standard Club has noted that its members were regularly exploring new opportunities in diverse territories and thus frequently needed to ask how the law in a particular jurisdiction might impact the enforceability of key contractual provisions.
Standard Club has therefore produced a list of key offshore jurisdictions and how the various relevant laws apply.
The study specifically looks at:
- the right to limit liability (specifically in respect of wreck removal)
- the application and geographical reach of the CLC Convention, Wreck Removal Convention, Maritime Labour Convention or any related domestic legislation
- the enforceability of knock-for-knock provisions in a contract and whether there are any gross negligence or wilful misconduct exceptions to this.
The jurisdictions covered are:
- Angola
- Australia
- Brazil
- India
- Indonesia
- Malaysia
- Mexico
- Nigeria
- Norway
- Qatar
- Saudi Arabia
- Singapore
- Thailand
- UK
- USA
The full guide is available at:
http://www.standard-club.com/media/2767858/a-guide-to-key-offshore-jurisdictions.pdf
IMN is providing a daily country-by country summary. Tomorrow, Singapore.
11) Saudi Arabia
Q: Is Saudi Arabia signatory to an international convention relating to limitation of liability for maritime claims? If not, can shipowners limit their
liability under local law?
A: No, Saudi Arabia is not signatory to any international limitation conventions, and shipowners cannot limit their liability under local law.
Q: Is Saudi Arabia signatory to the Bunkers Convention?
A: No, Saudi Arabia is not signatory to the Bunkers Convention.
Q: Is Saudi Arabia signatory to the International Convention on Civil Liability for Oil Pollution Damage (CLC)?
A: Yes. This was ratified by Saudi Arabia as an International Convention. This was not enacted by domestic legislation.
Q: What is the geographical application of the Bunkers Convention in respect of Saudi Arabia?
A: It applies to the territory of Saudi Arabia including its territorial sea.
Q: Are there any exclusions or exceptions in respect of offshore vessel types?
A: No. There are no exclusions or exceptions in respect of offshore vessel types.
Q: Is Saudi Arabia signatory to the Nairobi International Convention on the Removal of Wrecks (WRC)?
A: No, Saudi Arabia is not signatory to the WRC.
Q: Is Saudi Arabia signatory to the Maritime Labour Convention (MLC)?
A: No, Saudi Arabia is not signatory the MLC.
Q: Is ‘gross negligence’ or ‘wilful misconduct’ recognized as a legal concept under Saudi law?
A: ‘Gross negligence’ is referred to under Saudi law in relation to commercial instruments. However, there is no definition of ‘gross negligence’ and it is not recognized as a legal concept under other Saudi laws. ‘Wilful misconduct’ is not recognized as a legal concept under Saudi law.
Q: Is the knock for knock liability regime a recognized concept under Saudi law?
A: No. The knock for knock liability regime is not a recognized concept under Saudi law. Limiting liability under contract may in theory be recognized and upheld under Saudi law. However, the approach of the Saudi courts is uncertain and will depend on whether they would classify the claim as arising out of contractual or tortious liability. Limitation of liability clauses will not be upheld in the case of tortious liability.
Q: If knock for knock is a recognized liability regime under Saudi law, will it be upheld in the event of ‘gross negligence’ or ‘wilful misconduct’?
A: The position in relation to contractual claims is unclear, as ‘wilful misconduct’ is not a recognized legal concept under Saudi law and ‘gross negligence’ is only recognized in the context of commercial instruments.
Q: Will industry standard contracts such as BIMCO’s TOWCON, TOWHIRE, SUPPLYTIME, WRECKHIRE, WRECKSTAGE, WRECKFIXED and HEAVYCON be upheld under Saudi law?
A: Industry standard contracts would be upheld by the Saudi courts provided that the terms of the contract do not violate public policy or Islamic Sharia law. The position is therefore uncertain.
For further information, contact:
Sarah Wallace
Claims Director, Offshore
+44 20 3320 8900
Yaman Al Hawamdeh
Partner, HFW
+971 4 423 0531
Anas Al Tarawneh
Senior Associate, HFW
+971 4 423 0556