1 Introduction

This chapter looks at the interaction between the statutory regulation of liability for damage or loss caused by petroleum spills from offshore installations, as set forth in Chapter 7 of the Norwegian Petroleum Act,1 and allocation of risk in oil and gas contracts achieved through the use of knock-for-knock clauses. The chapter first sets forth the liability regime under Chapter 7, then examines the contractual allocation of risk in model oil and gas contracts used on the Norwegian Continental Shelf (NCS), before determining the validity of said clauses and its effects when interacting with Chapter 7 liability. It is important to remember, however, that knock-for-knock clauses cover many more situations than just possible Chapter 7 pollution damage. In other words, situations arising under Chapter 7 of the Petroleum Act are only a part of what these risk allocation clauses cover.