Pre-Contract Risk Assessment in the Oil and Gas Sector

INTRODUCTION

Pre-Contract Risk Assessment is critical in the Oil and Gas industry. This training course is designed to provide a comprehensive overview of common oil and gas contracts, focusing on identifying potential contractual pitfalls, especially in light of the challenges posed by COVID-19. Many contracts were renegotiated during the pandemic, and this course will enhance your ability to mitigate risks through effective commercial clauses while increasing profitability.

Participants will explore risk management concepts and various tools to address risks, followed by an analysis of the general commercial risks involved in placing contracts within the Oil and Gas sector. Practical exercises will help develop negotiation skills, enabling you to understand the dynamics of “the deal,” including timing, strategies for gaining an advantage, and the intricacies of negotiation tactics.

By the end of this course, delegates will be better equipped to negotiate successfully with international companies and governments, leading to enforceable agreements that include the most beneficial terms and conditions for their organization.

This GLOMACS training course will cover:

– Interactions of national legal systems and contractual frameworks in the sector
– The impact of COVID-19 on oil and gas businesses
– Strategies for negotiating contracts profitably in a post-COVID landscape
– Understanding common boilerplate contractual provisions and associated risks
– Arbitration and Alternative Dispute Resolution (ADR) techniques

Objectives

This training course aims to provide an understanding of common contractual pitfalls in the oil and gas industry, particularly post-COVID-19. Participants will gain knowledge of international oil and gas agreements, effective negotiation techniques, and strategies for working collaboratively with legal counsel to ensure terms are incorporated into enforceable contracts.

At the end of the training, you will learn:

– Fundamentals of commercial contracts
– Key players in the international oil and gas industry and the impact of COVID-19
– Negotiation techniques and the role of counsel in contract discussions
– Key legal issues in contractual risk management
– Managing force majeure clauses
– Analysis of key provisions in international oil and gas contracts
– Standard form contracts used in the industry, including AIPN and LOGIC/CRINE
– International dispute resolution processes in the oil and gas sector

Training Methodology

This interactive training course will employ various adult learning techniques, including role-playing, case studies, discussion groups, and scenario building. A highlight will be a simulation exercise that allows participants to negotiate oil and gas contracts in an interactive role-play format. This will enable attendees to apply their knowledge and understanding to negotiate more effective contracts, enhancing their risk management skills and potential rewards.

Organisational Impact

For professionals in the oil and gas industry, this training course offers a unique opportunity to deepen your understanding of relevant contracts and improve your negotiation skills.

Your organization will benefit by:

– Enhancing the expertise and skills of personnel managing legal risks in oil and gas contracts
– Understanding current international practices in oil and gas agreements
– Learning to mitigate risks in contract negotiations
– Improving negotiation capabilities within your contract personnel

Personal Impact

Participants will gain:

– An enhanced understanding of international practices related to oil and gas contracts
– Improved negotiation techniques and skills for drafting related agreements
– Insight into managing legal risks associated with oil and gas contracts
– Knowledge of how to select appropriate dispute resolution methods and draft suitable ADR clauses

WHO SHOULD ATTEND?

This training course is suitable for a diverse range of professionals, including:

– Commercial Managers in the Oil and Gas sector seeking to enhance contract negotiation skills
– Geologists and Engineers wanting to improve their understanding of commercial contracts
– Legal practitioners in the Oil and Gas sector aiming to expand their knowledge
– Insurance and Risk Managers focused on reducing legal and contractual risks
– Academics specializing in Oil and Gas Law
– Government officials, policymakers, and regulators

Course Outline

**DAY 1: The Commercial and Legal Framework**
– Overview of the legal system and fundamental legal principles
– Mandatory elements of enforceable contracts
– Contract formation, terms, and conditions
– Assessing remedies for breaches in the Oil and Gas industry
– Avoiding risk through termination clauses

**DAY 2: Understanding Common Oil & Gas Upstream Contracts**
– Production Sharing Contracts and similar agreements
– Joint Operating Agreements
– Farmout/Farm-in Agreements
– Drilling and Service Contracts

**DAY 3: Effective Use of Force Majeure Clauses Post COVID-19**
– Understanding the purpose and risks of force majeure
– Avoiding common pitfalls
– Assessing and managing risk in contracts

**DAY 4: Common Contract Pitfalls & Negotiations**
– Reviewing boilerplate clauses and negotiating strategies
– Insurance and indemnity issues
– Contract drafting exercises for effective indemnity clauses

**DAY 5: Dispute Resolution in Oil and Gas Contracts**
– Pre-contractual considerations and drafting tips
– Types of dispute resolution methods: negotiation, arbitration, mediation, litigation
– Framing dispute resolution clauses and ad hoc agreementsa