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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 license 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. What are the most important areas a commercial manager in an oil and gas company should be looking at when he is putting a new contract in place? What should he be asking his legal team to include? How can he negotiate ‘better’ contracts with suppliers and business partners? How can he protect his business, if disputes develop? These are just a few of the questions this course will address, focusing on contracts in use in the oil and gas industry. Using actual examples from the petroleum resources sector, the 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 the candidates an overview of contract law and practice, and will sharpen their abilities to negotiate effectively.

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

• Develop an understanding of significant types of oil and gas contracts
• Highlight tips to follow and traps to avoid in purchasing materials or services
• Reinforce good practices in creating statements of work
• Update delegates on ways to evaluate supplier performance
• Build skills in how to manage contractor performance
• Lead and manage effective and efficient procurement processes
• Identify and manage risks that arise from and can be addressed by contracts
• Initiate and develop better commercial contracts
• Control and shape contract discussions to get results
• Improve supplier performance through better service level agreements
• Plan and manage the resolution of commercial disputes
• Design and write results-driven statements of work, to support the purchasing process
• Evaluate suppliers and their proposals effectively
• Identify the presence or absence of key elements of commercial agreements
• Contribute to the development of operational contracts for exploration and production contracts
• Employ contractual tools and techniques to increase competitive advantage
• Negotiate better service levels with suppliers

Contracts, Purchasing, and Project Personnel, Engineering, Operational, and Maintenance Personnel, Project and Contracts Management Professionals, Tendering, Purchasing, Contract Administration Professionals and Personnel, Engineering, Operational, Finance, Maintenance Professionals, Managers and executives in the procurement, finance, legal, risk and supplier relations department, Business Managers, Commercial staff, Project Engineers, Procurement staff, Legal staff, Contracts analysts & Officers, Contract Leaders & Engineers, Cost & Planning Engineers, Contract Administrators, Contracting Unit Supervisors, Claims Managers and Business Audit Officers, Contract Strategists, Project Managers, General Managers involved in contract negotiation and disputes, Commercial Managers, Buyers, Purchasing Managers, Tenders Managers, Supply Chain Managers & Executives, Procurement Managers & Personnel, Construction Managers, those involved in the planning, evaluation, preparation and management of tenders, awards and contract performance that cover the acquisition of materials, equipment and services

Petroleum Industry Contracts

· Formation of the contract

· 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

Managing the Purchasing Process

· 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

Managing Contractor Performance

· 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

Dispute Management & Resolution in the Petroleum Industry

· What is Contract breach?

· Damages and other remedies

· 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

Contract Negotiation Skills & Practice in Petroleum Industry

· Preparing for the negotiation

· 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

· Knowing your BATNA - what happens if the negotiation fails

· Measuring the success of the negotiation