Introduction:

Professionals of the oil and gas industries are more than ever required to know and understand the regulations and practices governing their industry. This requirement extends not just to lawyers, but also geologists seeking out new mining sites, engineers planning the drills, and those responsible for drawing up mining contracts, who all need to know the legal technicalities affecting their industry. During this course, delegates will acquire the fundamentals of international oil and gas agreements, along with negotiation techniques and strategies that work in international and multicultural settings. Delegates will also learn how to effectively negotiate in concert with counsel and how to get the terms negotiated incorporated into an enforceable international oil and gas agreement.

The course will give you an understanding of the art of negotiations. Delegates will understand the components of 'the deal', timing, strategies for gaining the upper hand in negotiations, games opponents play, good vs. bad negotiations and the pitfalls of positional bargaining. They will be better equipped to negotiate profitably with international companies and governments in order to enforceable agreements that contain terms and conditions most productive for their company. This course is specifically designed for professionals involved internationally in the oil and gas industry, it offers a unique opportunity to rapidly increase your understanding of the legal issues involved in various international scenarios and to improve your techniques and skills in drafting a variety of international contracts.

This course is designed to help professionals working in the oil & gas industry learn how to maximize competitive advantage in the oil and gas sector. The course is stimulating and practical and aims to provider delegates with the knowledge to effectively lead and manage procurement processes as well as contract discussions and negotiations within the oil and gas sector. Course highlights are:

• Key players in the international oil and gas industry
• Negotiation techniques and the role of counsel
• Explanation and analysis of key provisions in international oil and gas contracts
• Principal standard form contracts used in the industry including the North Sea LOGIC/CRINE and the International Petroleum Negotiators (AIPN) standard form contracts
• International dispute resolution framework and institutions: challenges unique to the oil and gas industry
• Key legal contractual risk management issues

Course Objectives:

By the end of this course, delegates will be able to:

• Identify risks that contracts should address
• Employ contractual tools and techniques to increase competitive advantage
• Appreciate the importance of typical standard contract terms and conditions
• Initiate and develop better commercial contracts within their organization
• Learn to look for key elements of commercial contracts
• Improve supplier performance through better contracts
• Plan and manage the resolution of contractual disputes

Who Should Attend?

Procurement Managers, Purchasing Staff, Engineering, Operational and Maintenance Personnel, Contracts Engineers, Administrators, and Managers, Commercial, Financial and Insurance Professionals, Project and General Management, Contracts & Contracting Unit Professionals, Project Professionals, Procurement & Purchasing Staff, Purchasing Professionals and Procurement Officers, Commercial Professionals, Contract Administrators, Contract Administration Professionals, Contract Managers and Contract Professionals, Supply officers, Buyers, Project Coordinator’s, Project Managers and other Project Professionals, Claims Personnel, Legal Advisers, Contract Strategists, Business Audit Officers, Engineers, Project Construction Professionals, Contract Administrators, Contract Professionals and Project Coordinators, Buyers, Purchasing Professionals and Procurement Officers, Contracts Managers, Project Managers, Tenders, Contracts, Buyers, Purchasing, Financial Personnel, Tendering, Purchasing, Project Management Professionals, Engineering, Operational, Trade, Finance, and Maintenance Professionals, all others who are involved in the planning, evaluation, preparation and management of tenders, specifications, awards, and contracts that cover the acquisition of materials, equipment, and services and who are in organizations whose leadership want high levels of competency in those involved in these activities, those from a Project Management or General Management background who do not think they have sufficient understanding of contract issues, those new to the function, preparing for a major project, or experienced managers looking for a refresher, anyone involved in the management of risk, those involved in implementing and administering contracts and handling claims and change orders; also those involved in any conflict or dispute with a contracting party and interested to learn how to avoid or resolve these contractual issues, those involved in contract and business related negotiations, those involved in any aspect of implementing, managing or administering contracts in the post-award phase

Course Outline:

Managing the Purchasing Process

• Overview of purchasing best practice
• Creating interest from the market in your opportunity
• The statement of work for an oil services contract
• 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

Petroleum Industry Contracts

• Formation of the contract
• Express and Implied terms
• Typical features of exploration and production contracts and contracts for the supply of oil-related services
• Local content contract requirements
• Knock for Knock Liability considered
• Anti-corruption measures in petroleum industry contracts
• Case study exercises using oil contract examples

Managing Contractor Performance

• Identifying and managing supplier risk
• Getting and maintaining supplier contract performance
• Service level agreements
• Setting SMART objectives
• Key performance indicators
• Contract governance; managing contractual variations
• Why performance is Important and who is involved?
• Post contract closure action

Dispute Resolution in the Petroleum Industry

• Contract breaches and remedies
• Termination of contract
• Should we litigate?
• Using arbitration, mediation or conciliation as means to resolve contractual disputes
• Strengths and weaknesses of ADR as an alternative to litigation
• Dispute resolution scenario

Contract Negotiation Skills and Practice in a Petroleum Industry Context

• Preparing for the negotiation
• Understanding the position of the other side
• Negotiation roles and tactics
• Reaching an agreement
• Knowing your BATNA - what happens if the negotiation fails
• Negotiation role play

COURSE LOCATIONS