Every oil and gas operation involves numerous contracts, from start to finish. At the moment, oil and gas projects are getting bigger and more challenging, meaning the risk inherent in any contract between parties has also increased, between contractors, sub-contractors, operators and governments alike.

The market is rife with uncertainties, including the actual (rather than projected) project size, the length of time required to carry out the project, the capital required to carry out the project, and contractor loyalty to name some of the most crucial uncertainties.

 

Often, what is initially laid out in a contract will cease to be relevant 1, 2 or 5 years down the line, when the development takes an unexpected turn. It’s important to remember that ‘contract risk’ doesn’t just refer to the negotiating and writing of the contract, it encompasses the contract’s entire lifetime, until the project finishes.  A global perspective is also imperative – confusion in contracts often arises because of a lack of consistency between countries, between companies and also because due to language barriers.

 

The continually increasing size of oil and gas projects makes Contract Risk a bigger problem than ever before. Due to changes in legislation, unfamiliar legal terrain and terminology, the industry needs to be constantly updated on all aspects, and benefit from the knowledge and experience of others.

 

 

Shell International BV,  Deputy General Counsel Exploration & Production 

Centrica, General Counsel 

Siemens Oil & Gas Division,  Head of Contract Management 

Sterling Energy, Legal Manager

OMV International/Petrom, Business Development & Commercial Manager

Siemens Oil & Gas Division, Commercial Director, Head of LNG and Complex Projects

GE Oil & Gas, Counsel Commercial Operations

University of Stavanger, Professor of Petroleum Economics

Energy Charter, General Counsel

Oxford Institute for Energy Studies, Consultant Senior Research Fellow  

 

 

 

 

· Resolve disputes in alternative ways

·  Effectively manage agreements with governments in emerging markets (through PSAs)

· Optimise the allocation of risk in contracts with foreign parties

· Learn about the latest legal developments concerning the oil and gas industry

·  Reduce contracting costs through intelligent risk management strategies

· Identify and overcome the challenges of contracting in unfamiliar legal terrain

·  Evaluate the future world oil and gas outlook and direction

·  Benefit from benchmarking portfolios and strategies against fellow operators

· Establish long-term, mutually profitable relationships between the parties in the contract

· Know about the legal environment of your company and use this knowledge to your advantage

·  Consider the risks inherent in dealing with contracting and turn them to your advantage, both practically and financially

 

 

From Oil and Gas Operators and Contractors:

VPs, Directors, Chiefs, Heads, Team Leaders, Managers of: legal departments, risk departments, procurement departments, contract departments, business development