**INTRODUCTION**

The oil and gas industry operates on a global scale, trading pipeline gas and LNG across regions such as Africa, Europe, the Middle East, Asia, and North America. The rapid growth of these markets, driven by increasing demand and deregulation, presents significant opportunities for stakeholders, including government entities, producers, sellers, transporters, and buyers. However, the complexities of high contract values, intricate commercial terms, volatile prices, cultural differences, and unpredictable risks have made contract negotiation, dispute resolution, and risk management increasingly challenging.

To address these industry dynamics, this advanced GLOMACS training course focuses on the critical considerations and conditions for successfully concluding Gas and LNG Sales Agreements. Participants will gain insights into how buyers and sellers negotiate these agreements, along with a detailed understanding of the essential terms involved.

**This training course will cover:**

– The dynamics of downstream, midstream, and upstream activities
– Essentials of contract principles
– Gas sales and LNG contracts referencing international model contracts
– Transportation agreements and their international models
– Gas sales and purchase agreements
– Contractual risk management issues, including insurance, indemnities, liabilities, and force majeure
– Negotiation techniques and strategies relevant to LNG contracts

**Objectives**

The aim of this GLOMACS training course is to provide an overview of LNG contracts within the oil and gas industry, enabling participants to negotiate key LNG contracts profitably, assess and manage pricing and risks, and understand the application of Alternative Dispute Resolution (ADR) relevant to these contracts.

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

– Identify common contractual pitfalls in LNG contracts
– Negotiate LNG contracts effectively, including insurance provisions, liability, and indemnity clauses
– Draft and negotiate LNG force majeure clauses
– Assess and manage risks associated with LNG contracts
– Apply dispute resolution methods to LNG contracts

**Training Methodology**

This interactive training course will provide participants with the opportunity to enhance their skills in planning, negotiating, and drafting LNG contracts through role-playing, case studies, discussion groups, and scenario-building activities. A key feature will be a simulation exercise where participants negotiate oil and gas contracts, allowing them to apply their knowledge in a practical setting.

**Organisational Impact**

Professionals engaged in the oil and gas sector will benefit from this training course by rapidly increasing their understanding of LNG contracts and improving their negotiation and drafting skills. Organizations will gain:

– Enhanced expertise and knowledge in managing legal risks associated with LNG contracts
– Insight into current international practices for LNG contracts
– Strategies to mitigate risks in LNG agreements
– Improved negotiation skills among contract personnel

**Personal Impact**

Participants will enjoy the following benefits from this training seminar:

– A comprehensive understanding of international practices relevant to LNG contracts
– Enhanced negotiation techniques and drafting skills for various LNG contracts
– Improved capability to manage and mitigate legal risks associated with LNG contracts
– Guidance on selecting appropriate dispute resolution methods and drafting suitable ADR clauses
– Increased confidence in negotiating and managing claims and disputes

**WHO SHOULD ATTEND?**

This training course is tailored for professionals involved in contract negotiations and those seeking a deeper understanding of gas contract principles, including pricing terms and risk allocation. The intended audience includes:

– Senior and middle-level commercial managers
– Commercial lawyers
– Contracts managers
– Compliance personnel
– Risk managers
– Energy purchasing managers
– Strategy managers
– Pipeline marketing managers
– Operations managers
– Project managers
– Senior government officials and regulators

**Course Outline**

**DAY 1**
– Dynamics of Downstream, Midstream, Upstream & Contract Law
– Introduction to LNG & Sales Contracts
– Training objectives
– Key terms and definitions
– Main international industry players
– Overview of LNG and sales agreements
– Legal systems and contract law
– Mandatory elements of enforceable contracts
– Contract formation, terms, and remedies for breach

**DAY 2**
– The Essence of LNG Sales Contracts
– Characteristics and processes of LNG sales contracts
– Commercial realities and drafting essentials
– Fundamental legal principles and cultural considerations
– Overview of the LNG industry and value chain
– Financing of LNG projects
– Transportation agreements

**DAY 3**
– Gas Sale & Purchase Agreements
– Types and parties involved
– Terms, effectiveness, delivery, and quality
– Pricing, invoicing, and force majeure considerations
– Termination and tax implications

**DAY 4**
– Force Majeure Clauses
– Purpose, risks, and avoidance strategies
– Insurance provisions and claims management
– Contract management and operational issues
– Dispute resolution mechanisms

**DAY 5**
– Contract Claims & Dispute Resolutions
– Types and assessment of claims
– Dispute resolution options, including ADR
– Mock arbitration exercise
– Contract closeout and review of lessons learned
– Seminar overview and learning outcomes