• Petroleum Contract Strategy & Development

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Course Overview

 

Petroleum Contract Strategy & Development

As with any journey, the first step is perhaps the most important. Learn in this interactive workshop how crucial a sound contract development strategy is to your Oil and Gas contracting success. This session will expose attendees to a variety of contracting strategy development techniques that work.
- When does a contracts team need a contracting strategy?
- Who should be involved in developing these strategies?
- How can you ensure continuous alignment between business strategies and contracting decisions?
 

Benefits:

• UNDERSTAND the relevance of corporate strategies as direction for your contracting plans
• ALIGN coporate philosophies between contracting parties to ensure greater contracting effectiveness and success
• CREATE efficiency and effectiveness in your contracting processes
• OPTIMIZE value and financial returns from your contracts
• MANAGE risks with greater effectiveness
• ESTABLISH greater focus for your contracting teams
• GET your contracting process on the right track
• GAIN control of the timing for your contracting projects

 

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 1

1)Taking the First and Most Important Step in Developing a Contract - The Results Versus Resources Decision
a) What is a result versus resource transaction?
b) Understanding the impact on the contract structure and language
c) Understanding the impact on the risk allocation, pricing and overall relationship
Exercise: Exploring whether a wellhead maintenance is a results or resources contracting opportunity

2) Prioritizing the Contracting Objectives
a) Developing a list of contracting objectives - technical and commercial to legal
b) The difference between rating and ranking and the iterative approach
c) Separating wants from needs
Exercise: Identifying and prioritizing objectives on a drilling platform fabrication contract

3) Understanding the Power Curves and Their Impact on Contracting
a) The keys to maximizing power
b) Understanding the shift in power and how to control the shift
c) The impact of power on negotiations
Exercise: Developing a contracting strategy for an an offshore distributed control system (DCS) project

4) Recruiting and deploying the ideal contracting team
a) Creating an effective core team
b) Including stakeholders from across the organization as an extended team
c) The role of senior management and internal sponsors - gatekeeper or not?
Exercise: Forming a contracting team for an oil and gas sector contracting project

 

DAY 2

5) Understanding the relevance of corporate strategies in contracting
a) Corporate growth strategies and how to enable them
b) The emergence of reputation risk and how to mitigate it through contracting
c) Policies that can be either enabled or disabled through effective contracting
Exercise Understanding the new direction corporate Upstream management is leading - and how to align the contracting capability

6) Integrating sourcing and sales strategies into the contracting strategy
a) The emergence of strategic sourcing and category strategies
b) Understand how sales and revenue recognition strategies drive transactions and negotiations
c) Integrating commercial relationships across the entire enterprise - how can sourcing impact sales and vice versa?
Exercise: Understanding the new direction the Chief Procurement Officer and Chief Sales Officer are heading - and how to align the contracting
capability

7) Defifining the contracting process
a) The key phases in world-class contracting processes
b) Managing the gates in a gated contracting process
c) Mobilizing the optimal tools and talents throughout the contracting process
Exercise: Integrating process and operational realities to yield a world-class contracting process in the oil and gas sector

8) Pursuing clarity and understanding how to attain it
a) Tips on how to generate greater clarity
b) The impact of clarity, or a lack of it, in overall contracting success
c) Understanding the sections of the contract which are open to the risk of ambiguity
Exercise Avoiding contracting problems by integrating clarity into a Master Services Agreement (MSA) for oilfield services

9) Implementing a world class contracting strategy
a) Developing a project plan to implement a contract in both entities
b) Setting realistic timeframes and milestones
c) Anticipating resistence points and barriers - and overcoming them
Exercise: Critiquing a contracting strategy from the oil and gas sector

 

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