• Mastering Petroleum Contract Drafting

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Course Overview

 

Mastering Petroleum Contract Drafting

Both parties to any commercial relationship in the oil and gas sector would argue that they want a fair and good deal. But what is a fair contract? A good contract? This hands-on session will explore what is needed for a good and fair contract, as well as the
key components to a commercial agreement.
- Get exposed to some of the important do’s and don’ts in oil and gas contracting
- Explore proven and innovative contracting strategies
- Learn the value of having a contract that can be managed and ensure your contracts reflect what you have negotiated

 

Benefits:

• GAIN insight into oil and gas contract law and various jurisdictional differences
• ESTABLISH a solid foundation leading into the negotiation and management of oil and gas industry contracts
• IDENTIFY and manage the contractual risks in a commercial contract in the oil and gas sector
• DEVELOP a solid knowledge of popular oil and gas industry contract terms and understand the rationale driving them
• UNDERSTAND how and when to draft contractual remedies
• CREATE a foundation for effective SOW's, SLA's and KPI's in the oil and gas sector

 

This program is designed for:
• In-house Counsels/Legal Counsels
• Contract managers
• Contract Negotiators
• Heads of commercial sourcing
• Project Directors
• Sales Contract Professionals
• Project Leaders
• Contractors
• Contract Lawyers/Attorneys
• Head of Contracting & Sourcing
• Heads of commercial sourcing
• Project Managers
• Supply Chain Managers & Excutives
• Procurement Managers
• Risk Manager
• Supply Chain Supervisors
PLUS anyone who is involved in Oil & Gas contracts or anticipates being involved in the future

 

Course Outline

 

DAY 3

1) Understanding "Best Practices" in contract drafting
a) The generally recognized best practices in contract drafting
b) Understanding your contracting process and which best practices are viable
c) Creating a road map to elevate contracting into "Best Practice" status
Exercise: Developing a contract drafting process that creates a competitive advantage

2) Allocating risk through contract terms and conditions
a) The most often negotiated and disputed contract terms
b) How to measure the risk being allocated
c) The decision to allocate risk rather than mitigate risk
Exercise Drafting risk allocation provisions in both a FEED and EPCM contract

3) Deploying contract drafting and authoring tools
a) Software tools that enable greater contracting results
b) The difference between an electronic contracting strategy and the supporting tools
c) Implementation challenges with electronic contracting tools and systems
Exercise: Using contract drafting and authoring tools on an engineering services contract

 

DAY 4

4) Creating an objective evaluation matrix
a) What are the key contracting features to evaluate in the commercial viability analysis
b) Does the importance of contracting objectives change - and how can we adjust to the changes?
c) The use of scorecards and evaluation matrices in assessing contractual positions
Exercise: Determining the key evaluation points across a portfolio of oil and gas commercial contracts

5) Producing a comprehensive tender package
a) The interdependencies between commercial, technical and legal aspects of a transaction
b) Using the tender package to maximize negotiation effectiveness
c) Key elements and the checklist needed to ensure a comprehensive and complete package
Exercise: Producing a robust RFx and bid package for a floating production storage and offloading (FPSO) contract

6) Structuring framework agreements to achieve a competitive advantage
a) The key components of a framework agreement
b) Maintaining flexibility and consistency throughout the framework agreement
c) Six key tips to achieve contracting excellence through framework agreements
Exercise: Creating a LNG facility maintenance services agreement

 

DAY 5

7) Defifining what is in and out of scope - the SOW
a) Integrating technical specifications into the SOW
b) Using basic language to define contractual responsibilities
c) Building internal consensus on what is wanted and needed - and what is not
Exercise Generating the scope of work for a pipeline inspection and maintenance services agreement

8) Establishing performance levels through SLA's
a) Transforming warranties and representations into empirical performance levels
b) Drafting remedies which drive performance
c) Enforcing and adjusting service levels based upon evolving business conditions
Exercise: Drafting a service level agreement for maintaining a portfolio of capital equipment

9) Focusing on the most important aspects of performance through KPI's
a) Making the KPI's more than SMART
b) What makes a Key Performance Indicator truly "key"?
c) Maintaining the balance between reward and retribution with KPI's
Exercise: Producing a gas plant maintenance contract that can be managed effectively, while enabling maximum value generation

 

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