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Energy Trading

Energy trading, whether it be oil, gas or power derivatives or physical products, is central to the function of energy markets globally.

The volatility in energy markets makes energy products a valuable commodities to trade, and almost every power project or M&A deal in the sector will require a significant amount of advice in relation to trading and hedging.

Allen & Overy has capitalised on its energy sector knowledge and market leading trading and derivatives practice to provide its clients with the most sophisticated advice on this highly specialised subject in all jurisdictions of the world. These clients include NOCs (National Oil Companies), IOCs (International Oil Companies), Independent Oil & Gas Companies, and funders (debt and equity), power project developers, integrated power utilities, energy traders and governments.

Allen & Overy advises clients on issues such as physical commodity trading (short-term and long term); financial commodity trading contracts specifically relating to energy and emissions allowance markets (including hedging energy price risk and related counterparty credit risk); shipping and trading disputes. Allen & Overy also builds on its strong experience in trading and derivatives to advise clients on the set up of physical commodity trading platforms. Significantly we drafted the original form of Grid Trade Master Agreement which forms the basis of all bilateral electricity trades in the UK. We have subsequently advised several large and active market participants on contractual and regulatory issues in relation to gas and power trading.

We also have a market-leading financial regulatory practice, with lawyers who specialise in advising energy derivatives players on compliance, market abuse issues, and latest developments under EU Directives such as MIFID. 

News & insights

Publications: 18 MARCH 2020

Mining company not liable for unlawful acts of Sierra Leonean police

The Court of Appeal of England and Wales has upheld the High Court’s verdict in Kadie Kalma & ors v African Minerals Ltd & ors [2020] EWCA Civ 144.  This is an important case for businesses exposed to human rights risks through their reliance on third parties, particularly state security forces, in relation to their operations abroad.  The finding in this appeal confirms the limits on the circumstances in which a company can be held liable for harms caused by such third parties.  

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News: 06 FEBRUARY 2020

Allen & Overy advised APICORP on two facilities for an aggregate value of USD250m

Allen & Overy advised The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, on two facilities for an aggregate value of USD250m to Sonatrach Petroleum Investment Corporation (SPIC), a subsidiary of Sonatrach S.p.A., the Algerian state-owned national oil company.

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Pink and gold confetti

News: 07 JANUARY 2020

A&O rounds off 2019 with stellar performance in global M&A league tables

A&O has marked the end of Q4 2019 with a stellar performance in the M&A league tables; the result of advising on a number of complex, high-value transactions in a wide range of sectors and markets, around our global network in 2019. 

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Key regulatory topics

Publications: 01 MAY 2019

Belgium adopts legal framework on tenders for new offshore electricity production installations

​On 4 April 2019, the Belgian Parliament adopted a law introducing a competitive bidding procedure to award domain concessions for new offshore wind farms. In addition to setting out a general framework for the competitive bidding procedure, the law aims to further reduce subsidies granted to offshore wind electricity production while recognising that new wind farms are essential to achieving Belgium’s renewable energy targets under its EU and international commitments.

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