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Offshore Construction Contracting Principles

Pollution Indemnity

Principles

It is recommended that the following principles be applied in relation to indemnity for pollution or contamination under offshore construction contracts:

Contractor shall indemnify Company Group for any claims for pollution or contamination emanating from Contractor's Marine Spread.

Company shall indemnify Contractor Group for claims related to any other pollution or contamination.


Clarifications / Considerations

Since a marine contractor has (or should have) full knowledge and awareness of any potential pollution emanating from its own marine spread, while Company doesn't, Contractor shall take full responsibility for such and indemnify Company Group accordingly.

Since the operator of the field has (or should have) full knowledge and awareness of the field and any structures, vessels or other property present in the field, while Contractor doesn't, Company shall take full responsibility for such and indemnify Contractor Group accordingly.


Example Clause

The following is an example of a proper pollution indemnity clause.

X. Pollution Indemnity

Contractor shall assume all liability for and defend, indemnify and hold Company Group harmless from any loss or damage arising out of pollution and/or contamination emanating from Contractor's Marine Spread.

Company shall assume all liability for and defend, indemnify and hold Contractor Group harmless from any loss or damage arising from all other pollution and/or contamination.

Contractor shall take such steps as are reasonably necessary to ensure that the disposal of all substances, articles or liquids emanating from Contractor's Marine Spread is carried out in such manner as not to cause pollution or contamination of the sea or the shore.

Contractor shall impose a similar condition on any Subcontractor that he may employ. In the event of any breach of this obligation Contractor shall protect, indemnify and hold Company Group harmless from the resulting loss, damage, costs or expenses.