International Oil & Gas Contracts

Course 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. However, knowledge of the black letter law is no longer enough; a practical understanding of operations is also a necessity. During this Euromoney training, 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 hands-on practical exercises 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. After attending this course, delegates will be better equipped to negotiate profitably with international companies and governments in order to produce enforceable agreements that contain terms and conditions most productive for their company. Over this 4 day course, you will discover: Key players in the international oil and gas industry Negotiation techniques and the role of counsel Explanation & analysis of key provisions in international oil & gas contracts, including: Operating/ joint venture Concession/ royalty Study and bid group Hydrocarbon sales Insurance & service company agreements Principal standard form contracts used in the industry including the North Sea LOGIC/CRINE and the Association of Independent 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 In an optional one day course, introduction to key English contract law principles Market & expected outcomes This four day training 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 UK and international scenarios and to improve your techniques and skills in drafting a variety of international contracts. Who should attend? Commercial managers in the oil and gas sector looking to improve their contract negotiation skills and overall commercial performance Legal practitioners in the oil and gas Sector looking to increase their knowledge Legal practitioners in private practice looking to specialise in oil and gas law Insurance and risk managers looking to reduce the legal and contract risks for their companies Academics/students looking to increase or specialise in the area of oil and gas law Government departments, policy makers and regulators Module 1: (Day 1 – Optional) Designed for people with no experience in contract law or those needing a refresher Module 2: (Day 2–4) International oil & gas contracts *Modules can be booked together or separately
Day 1 Module 1 (optional) This day should be attended by any delegates who have no recent formal education in contract law, and is a necessary prerequisite to the oil and gas specific materials to be covered over the following four days. This day will act as a refresher session to delegates with formal contract law education but is not necessary. The legal framework and contract law I The UK legal system including sources of law English contract law: contract formation English contract law: contract terms Workshop 1- Contract terms and content delegates will be presented with some problem solving exercises in which they will consider some issues surrounding the terms in some mock contractual situations. Contract law II English contract law: interpretation of contract terms English contract law: remedies for breach of contract Workshop 2 - Interpretation of contract terms delegates will consider some exercises in which the principles of interpretation of contracts will be used to find practical solutions to ambiguous contract terms, and will consider better ways in which the contract could have been framed. * Designed for people with no experience in contract law or those needing a refresher Day 2 Module 2 International oil & gas industry and its key players- with special focus on the UKCS Terminologies & introduction to the oil industry Nature of ownership in oil and gas; the law of the sea and sovereignty over natural resources Developments of contractual, licensing, and fiscal arrangements in the UKCS Structure used in regulating the UK oil and gas industry Infrastructure development Boundary disputes Host country legislation Operation: Granting instruments (Association of Independent Petroleum Negotiators- AIPN) Key players and main function, relationships, examples Exploration grants Production grants Licensing, exploration and appraisal Development & production operations Decommissioning: information on the legislative framework in the UKCS and internationally Standard agreements for the UK offshore oil & gas industry Supply chain Delegates will compare and contrast various granting instruments from around the world. Workshop 3 - Introduction and infrastructure delegates will review and consider issues discussed with a particular emphasis on the UKCS licensing regime Day 3 Module 2 Some important oil & gas contractual issues: an examination This part (day 3 and day 4) focuses on the typical commercial issues and arrangements in the international oil & gas industry. It also considers how to negotiate and review international oil and gas contracts, how to asses and manage risk, how to avoid common contract pitfalls, and how to make an effective use of alternative dispute resolution option. Joint Operating Agreements (JOA’S) AIPN model form international operating agreement Drafting issues Workshop 4: Joa drafting Delegates will discuss drafting issues arising out of JOA’s and in doing so will consider some practical drafting examples. Participation agreements Farm in/farm out agreements AIPN model forms for these agreements Unit operating agreement/unitisation What is it? Why do it? Delegates discuss the effects of participation agreements and the effects of unitisation. The LOGIC contracting structure The structure of the LOGIC contract suite Some key LOGIC contractual provisions examined Workshop 5: Logic contracts Delegates will work through some common LOGIC contract provisions and will consider the situations in which some of these key clauses could be used. Purchase sale agreements AIPN model purchase sale agreements Delegates will debate the consequences of purchase sale agreements and the merits of the AIPN model agreements. Day 4 Module 2 Confidentiality and bidding Issues AIPN model form confidentiality agreement AIPN model form international study and bid group agreement Contract negotiation Contract reviewing Due diligence & risk management managing oil and gas contracts Workshop 6: due diligence and risk management delegates will consider an exercise involving due diligence and risk management implementation in negotiations on an oil and gas transaction. Dispute resolution in oil and gas contracting Types of dispute resolution vehicles: negotiation, arbitration, mediation, litigation, expert determination Importance of the dispute resolution clause Framing the dispute resolution clause Ad hoc dispute resolution agreements Workshop 7: The dispute resolution clause delegates will consider some examples of dispute resolution clauses and will critically examine these with a view to considering some of the essential ingredients of such a clause, as ideally framed. Course summary and close