International Petroleum Contracts

What is the role of contract in the procurement management process? What is the link between procurement and supply chain management, and the project life cycle? Aligning procurement strategy to project deliverables ensures that the project meets its objectives. As procurement often represents a considerable portion of project spend, it is important that the process is well managed to ensure that value for money is realised.

It is however the contract that ties together the parties' aspirations and the project deliverables. Getting the contract right is important if disputes are to be minimised and the project delivered on time, at the least possible cost and with regard to safety of operations.  Contract negotiation is a regular feature of oil and gas business transactions. At each step in the value chain, a variety of contracts is being negotiated and brought to closure. Sometimes, this involves a maze of complex and long drawn agreements.

This course exposes participants to a comprehensive treatment of the elements of international oil and gas contracts. It demonstrates how they can apply this with the right negotiation skills to make the right business decisions.

At the end of the course delegates will:

• Understand the role of contract in the procurement process
• Learn how to develop a contract strategy and adopt the appropriate contractual relationship that delivers the project objectives
• Learn how to negotiate better contract outcomes
• Align their risk management plans to Contract Ts and Cs that deliver project objectives
• Develop procurement strategies that aligns with project objectives and deliver better outcome
• Effectively manage contracts to ensure mitigation of risks/losses, minimisation of disputes and effective supplier relationship management

• Overview of Oil Industry Operations
• Nature and Peculiarities of Oil and Gas Contracts
• The Contracting environment
• The Procurement and Project Environment
• The Tender Process
• Contract Negotiations
• Contract Objectives and Key Performance Indicators
• Contract Award, Administration and Management
• Supplier/Contractor Relationship Management
• The Contract Negotiation Framework
• Qualities of a Good Negotiator
• Forms and Types of Negotiations
• Sources of Power in Negotiation
• The Negotiation Schedule
• Techniques of Negotiation
• Culture and Political issues in Negotiation
• Negotiating as a Team (economist, business analyst, procurement specialist, geologist, lawyer etc)
• Negotiation in Practice: Role Plays and Video Demos
• Negotiating Sales Agreements and Service Contracts
• Negotiating JV, PSC, Farm-out/farm-in contracts
• The legal framework of JV, PSC, Farm-out/farm-in, sales agreements, and service contracts
• Negotiating special clauses: indemnity, non-disclosure, force majeure, and dispute      resolutions
• Negotiating Gas Sales & Purchase Agreements (GSPAs)
• The Petroleum Industry Bill and Contract Negotiations – Emergent Issues