Client Alert: English Contract Law Update: When is an Operator a Reasonable and Prudent Operator?

Upstream oil and gas agreements governed by English law frequently utilize the concept of a “Reasonable and Prudent Operator” – or similar language – in setting standards for the performance of operators in the context of joint ventures, service agreements, or product sales and purchases.  There is little direct case law authority on how this concept is treated under English law, so it is useful to analyze the Commercial Court’s view in the recent case of Scottish Power UK Plc v. BP Exploration Operating Company Limited [2015] EWHC 2658 (Comm).