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Gratte-ciel
Writer's pictureAfif Mshangama - Lawyer

Expert Oil Law Lawyers and Business Setup Services in Dubai


Oil transactions, whether crude or refined, represent complex and high-risk operations requiring in-depth legal expertise. For over 15 years, our law firm has been recognized for its expertise and ability to secure these transactions for states, oil companies, and intermediaries. Based in the United Arab Emirates, we also have solid experience in Africa, Europe, and the United States. We understand storage methods in Europe and specialize in drafting contracts as well as establishing banking guarantees to secure these transactions. Legal security is paramount given the high amounts involved and the risks associated with fake buyers and multiple intermediaries.


The oil sector is one of the most critical in the global economy, involving colossal sums and often tight deadlines. The complexity of contracts, the necessity of rigorous due diligence, and various risks, including fraud, require an expert approach. Fake buyers mainly seek to obtain real market prices, sometimes simulating a complete transaction. Our expertise allows us to navigate these complex situations, identifying genuine buyers and reducing associated risks.


I. Our Expertise in Oil Law


A. Contract Drafting, Regulatory Compliance, and International Dispute Management


Our firm offers comprehensive legal expertise in oil transactions. We draft detailed contracts specifying all transaction conditions, including quantities, prices, delivery conditions, and party responsibilities. Each contract is written in compliance with local and international regulations to ensure the security and legality of transactions. We conduct rigorous checks on counterparties to ensure their credibility and ability to honor commitments. By using secure technologies to manage data and communications, we reduce fraud and error risks. Our experience enables us to navigate the regulatory complexities of various jurisdictions, providing our clients with unmatched peace of mind.


Some disputes fall under international law and may need to be resolved through arbitration, a method we master and recommend for its speed and confidentiality. Managing international disputes is crucial, particularly in oil transactions where the amounts involved are substantial and the parties often located in different jurisdictions. We prioritize alternative dispute resolution methods such as mediation and international arbitration. These methods offer significant advantages, including confidentiality, speed, and cost reduction compared to traditional judicial procedures. Our lawyers are experienced in conducting these procedures and possess in-depth knowledge of the rules and practices of major international arbitration institutions.


In case of a dispute, we conduct a thorough analysis of the legal situation, facts, and available evidence. We develop a customized defense or claim strategy, considering the specifics of each case. We also assist our clients in building solid cases, gathering and presenting evidence convincingly before courts or arbitration panels. Our firm is also competent to represent clients before national and international courts. We have extensive experience in handling complex disputes involving multiple parties and cross-border issues. Our lawyers understand the technical aspects of oil transactions and can address specific legal issues in this sector.


Finally, we continuously monitor regulatory and jurisprudential developments worldwide to provide our clients with up-to-date and relevant legal advice. Our goal is to protect our clients' interests and ensure the legal security of their transactions by proactively anticipating and managing risks. With our expertise and experience, we offer our clients the peace of mind needed to focus on their core business, knowing their disputes are in good hands.


B. Banking Guarantees and Risk Management


Banking guarantees play a crucial role in securing oil transactions by providing financial security to the involved parties. Some commonly used banking guarantees include: A letter of credit (L/C) is a written commitment by a bank, issued at the buyer's request, guaranteeing that the seller will receive payment for the goods or services provided, provided the terms of the L/C are met. This includes presenting compliant documents, such as commercial invoices, quality certificates, and shipping documents. A demand guarantee requires the bank to pay the beneficiary upon the first written request, without the beneficiary having to prove the applicant's default, offering maximum security to the seller and reducing non-payment risks.


Similar to a traditional letter of credit, a Standby Letter of Credit (SBLC) is used as a payment guarantee in case of contractual non-compliance and is often used in international transactions to provide additional security. A performance guarantee ensures that the seller will complete the contract terms according to the agreed specifications and deadlines, indemnifying the buyer in case of non-compliance. Finally, a performance bond guarantees that the seller will meet contractual obligations regarding quality, quantity, and timing, allowing the buyer to claim compensation through the issuing bank in case of default.


We use secure technologies to manage data and communications, thus reducing fraud and error risks. Oil transactions are often complicated by the presence of fake buyers and multiple intermediaries. These fake buyers mainly seek to obtain real market prices, sometimes simulating a complete transaction. Our expertise allows us to navigate these complex situations, identifying genuine buyers and reducing associated risks.



II. Company Formation for Intermediaries


A. Business Formation Services in the UAE


Our firm offers comprehensive services for company formation in the UAE, a strategic hub for oil transactions. We assist intermediaries in creating their businesses, including obtaining necessary authorizations and establishing a compliant legal structure. In the UAE, there are freezones specialized in the oil sector that offer tax and logistical advantages.


We assist in company formation, including registration with local authorities and obtaining required licenses. We ensure that all operations comply with local regulations, ensuring complete transparency and legality of activities.


Additionally, we provide ongoing legal support to help intermediaries navigate the complex regulatory framework of the UAE, offering dispute management services specific to the oil sector.


B. Regulatory Implications and Requirements


Forming a company in the UAE for oil transactions involves meeting strict regulatory and compliance requirements. We help our clients understand and meet these requirements, ensuring their business can operate efficiently and legally. Due diligence is essential to verify the credibility of business partners and ensure the validity of documents.


Generally, reputable intermediaries and companies are well-known, but many fake documents can circulate. We are here to sift through, ensure the authenticity of information and documents, and protect our clients from fraud and scams.


Our law firm is a trusted partner in securing oil transactions worldwide. With recognized expertise and solid experience, we ensure compliance, transparency, and legal security for each operation. Whether you are a state, an oil company, or an intermediary, we offer solutions tailored to your needs and assist you in setting up companies in the UAE to optimize your transactions.



par Afif Mshangama et Akram Cheik
Afif Mshangama, Lawyer

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