Course Description
The oil and gas industry does business through contracts – yet so often the details are only understood by the core legal team who create them. Whether the subject under discussion is the purchase of a new oil exploration licence or the provision of specialist oil services, the obligations each party is committing to, and the rewards they will gain are determined by the contract. This course will develop and enhance the skills and capabilities of delegates on the how to do procurement well and how to create, negotiate and manage the contract that follows a procurement project. It will give delegates an overview of contract law and practice, and will sharpen their abilities to negotiate effectively.
Course Objectives
- Developing an understanding of significant types of oil and gas contracts
- Highlighting tips to follow and traps to avoid in purchasing materials or services
- Reinforcing good practices in creating statements of work
- Updating delegates on ways to evaluate supplier performance
- Building skills in management contractor performance
- Preparing delegates to negotiate and resolve supplier disputes
Who Should Attend?
- Engineers
- Managers
- Senior executives and decision makers involved in strategic and operational functions
- Anyone involved in an operational capacity with contractors and suppliers
Course Details/Schedule
- Formation of the petroleum industry contracts
- Important contractual terms
- Express and Implied terms
- Typical features of exploration and production contracts
- Contracts for the supply of services and materials
- ‘Local content’ contract requirements
- Knock for Knock Liability considered
- Anti-corruption measures in petroleum industry contracts
- Overview of purchasing best practice
- Creating interest from the market in your opportunity
- Developing the statement of work for an oil services contract
- The scope of work
- Results-based purchasing techniques
- Evaluating supplier proposals
- Is the lowest cost technically compliant bid the right one to choose?
- Moving from bid to contract award
- Identifying and managing supplier risk
- Getting and maintaining supplier contract performance
- Service level agreements
- Setting SMART objectives
- Key performance indicators
- Making changes to the scope of work – managing contractual variations
- Why performance is Important and who is involved?
- Post contract closure action
- What is petroleum industry contracts breach?
- Damages and other remedies in petroleum industry contracts
- Liquidated damages – tips and traps
- Termination of contract
- Should we litigate?
- Using arbitration, mediation or conciliation as means to resolve contractual disputes
- Strengths and weaknesses of Alternative Dispute Resolution processes
- Dispute resolution scenario
- Preparing for the negotiation in petroleum industry
- Setting the objectives of the negotiation
- Understanding the position of the other side
- Negotiation roles and tactics
- Win-Lose, Win-Win and other strategies
- Reaching an agreement
- What happens if the negotiation fails
- Measuring the success of the negotiation
