A recent case out of the US Court of Appeals for the Fifth Circuit highlights the importance of indemnity agreements in the oil and gas industry. The case, Certain Underwriters at Lloyd’s v. Axon Pressure Prods., 951 F.3d 248 (5th Cir. 2020), involved a well blowout that occurred in 2013 on the HERCULES 265 drilling rig in the Gulf of Mexico. In 2011, Walter Oil & Gas Corporation (“Walter”) chartered the HERCULES 265 drilling rig from Hercules Drilling Company (“Hercules”) to rework a well located about 84 miles south of Houma, Louisiana. The drilling contract (hereinafter “Drilling Contract”) between Walter and Hercules allocated liabilities between the parties. Continue reading >