Course Overview
With so much riding on its suppliers, vendors, and distribution networks, the oil and gas industry faces unique risks and complexities that highlight the need for a well-defined strategy for the development and execution of long-term contracts. The ability to streamline all business operations depends on a firm grasp of critical contract governance areas. In today’s volatile regulatory climate, it is essential for energy firms to have a flexible contract management system that can keep up with the demands of a wide range of stakeholders.
Course Objectives
- To learn and understand the legal concepts that apply to oil and gas contracts
- To learn everything there is to know about contracts including licencing, production sharing, and service provision
- To learn about potential risks and use proper contractual clauses to lessen those risks
- To improve the participant’s management and bargaining abilities during transactions
- To recognise, evaluate, and control the most important types of contractual risks
- To oversee the liability and force majeure clauses
- To understand ways to examine important clauses
- To outline the most effective methods of supply chain management
- To gain knowledge of methods for settling international oil and gas conflicts
Personal Benefits
- Gain skills needed to negotiate provisions in oil and gas contracts
- Learn to use well-drafted contract provisions, manage production and commercial risks, and ensure advancement in your career
- Develop the capacity to create a well-thought-out contracting strategy
- Gain familiarity with various contract provisions
- Manage contract term changes and the differences in approach between standard and customised contracts
- Understand various contracting tactics to achieve the organisation’s objectives
- Learn approaches for managing supplier performance
- Learn to examine the most effective methods of dispute settlement
- Improve the capacity to bargain during transactions confidently and successfully
Course Outline
- Oil and Gas Contracts
- Oil and Gas Contracting Principles
- Mutual Interest and Exclusivity
- Allowances/Licenses
- Contracts for Services and Work
- Contracts involving more than one party
- Supply Chain Management
- Acquisition Best price overview
- Identification and Management of Risk in the Supply Chain
- Developing the Workspace
- Eligible Vendors
- Management of the Supply Chain
- Award and implementation of contracts
- Subornation and corruption
- Key Contractual Issues and their Resolution
- Penalty and Performance
- Compensation and Liabilities
- Payment and Pricing
- Force Majeure
- Termination
- Requirements for Local Content
- Controlling Contract Efficiency
- Recognizing and Managing Supplier Risk
- Service level agreements (SLAs)
- Indicators of Key Performance
- Changing the Work Scope
- Liability Limitation and Exclusion
- Bonds, Guarantees, and Warranties
- Dispute Resolution in the Petroleum Industry
- Damages and Other Reparations
- Negotiation, Compromise, and Resolution
- Third-party disputes
- Arbitration vs. Litigation
- Measures of Enforcement
- Questions and Final Review in the Open Forum
- Managing Contractor Efficiency
- Obtaining and maintaining contract performance from suppliers
- Levels of service agreements
- Establishing SMART targets
- Identifying KPIs
- Governance of Contracts
- Why is performance crucial?
- Post-Contract Measures