No longer ‘boilerplate’: Force majeure provisions under fresh scrutiny, say Singapore lawyers

[SINGAPORE] Force majeure provisions – which free parties from contractual obligations under war or other unforeseen circumstances – are under intense scrutiny in Singapore’s oil and gas sector, driving a flurry of queries from clients amid the Middle East conflict.

Tam Shu Ching, a senior associate at law firm Herbert Smith Freehills Kramer, noted that clients are “no longer treating these provisions as boilerplate” and are engaging in “significant negotiation around the scope and drafting of such clauses”.

This intense focus follows recent force majeure declarations by Singapore players, including refiner Aster and olefins producer PCS, triggered by the prolonged closure of the Strait of Hormuz.