Oil and Gas Sector - Contract Management

• This is a stimulating and practical course designed for directors, managers, senior executives and decision makers involved in strategic and operational functions, including managers of procurement, finance, legal, risk and supplier relations and who want to understand how to maximise competitive advantage in the oil and gas sector.

Learning objectives

• To lead and manage procurement processes and contract discussions and negotiations
• To identify risks that contracts should address
• To employ contractual tools and techniques to increase competitive advantage
• To appreciate the importance of typical standard contract terms and conditions
• To initiate and develop better commercial contracts within their organisation
• To learn to look for key elements of commercial contracts
• To improve supplier performance through better contracts
• To plan and manage the resolution of contractual disputes

Course content

Managing the Purchasing Process

• Overview of purchasing best practice
• Creating interest from the market in your opportunity
• The statement of work for an oil services contract
• 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

Petroleum Industry Contracts

• Formation of the contract
• Express and Implied terms
• Typical features of exploration and production contracts and contracts for the supply of oil-related services
• 'Local content' contract requirements
• Knock for Knock Liability considered
• Anti-corruption measures in petroleum industry contracts
• Case study exercises using oil contract examples

Managing Contractor Performance

• Identifying and managing supplier risk
• Getting and maintaining supplier contract performance
• Service level agreements
• Setting SMART objectives
• Key performance indicators
• Contract governance; managing contractual variations
• Why performance is Important and who is involved?
• Post contract closure action

Dispute Resolution in the Petroleum Industry

• Contract breaches and remedies
• Termination of contract
• Should we litigate?
• Using arbitration, mediation or conciliation as means to resolve contractual disputes
• Strengths and weaknesses of ADR as an alternative to litigation
• Dispute resolution scenario

Contract Negotiation Skills and Practice in a Petroleum Industry Context

• Preparing for the negotiation
• Understanding the position of the other side
• Negotiation roles and tactics
• Reaching an agreement
• Knowing your BATNA - what happens if the negotiation fails
• Negotiation role play