Whether a contract for oil field services in the Gulf of Mexico constitutes a maritime contract has always been a significant issue for the offshore energy industry. If it is a maritime contract, the parties’ typical choice of maritime law will be enforced. If it is not a maritime contract, maritime law cannot apply and the contract will be subject to state law. For oil field contracts, this often means the application of Louisiana or Texas state law, whose anti-indemnity statutes can upset carefully negotiated contractual risk allocations. In short, this issue can determine who bears the liability for personal injuries, damage to property, or pollution damages.
The January 2018 decision in In re Larry Doiron, Inc. by the U.S. Court of Appeals for the Fifth Circuit created a new two-part inquiry to resolve this issue:
- “Is the contract one to provide services to facilitate the drilling or production of oil and gas on navigable waters?” and
- “Does the contract provide or do the parties expect that a vessel will play a substantial role in the completion of the contract?
