CONTRACTUAL REGULATION OF RELATIONS IN OIL AND GAS TRANSPORTATION VIA MAIN PIPELINES

The article provides a description of contractual relations arising in the sphere of oil and gas transportation through main pipelines. Contractual regulation is a specific type of private law regulation, since it should most clearly demonstrate the free expression of will of subjects and the optional orientation of private law. It is especially worth noting that the article analyzes existing agreements for the transportation of oil and gas through main pipelines. In the context of the analysis of current legal provisions, problems were identified in the legal regulation of contractual relations in the field of oil and gas transportation through main pipelines, which indicate failure to consider both parties’ interests when concluding such agreements. In order to ensure equal rights and obligations for business entities operating in this field, it is necessary to develop a separate agreement for oil transportation through main pipelines and a separate agreement for gas transportation through main pipelines. These agreements shall directly set out the conditions concerning parties’ rights and obligations, parties’ liability for failure to fulfill or improper fulfillment of their obligations, risks associated with obligation fulfillment, and issues regarding a dispute resolution procedure. In order to ensure the freedom of will when concluding the relevant agreements, the conditions to be agreed upon by agreement parties shall include an oil and gas quality acceptance and control procedure. Since this process is strictly individual for each main pipeline system, they shall also include a procedure for settlements between the parties, as well as information privacy conditions and mutual informing of the parties.