Petroleum Contract Strategy & Drafting

• Type
  Training
• Training Code
  PST0143
• 
• 

Course Outline

 

 

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?
Find out the answers to these questions and more!

 

 

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

 

 

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

 

 

Benefits:

 

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

 

 

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