Course Overview

With so much riding on its suppliers, vendors, and distribution networks, the oil and gas industry faces unique risks and complexities that highlight the need for a well-defined strategy for the development and execution of long-term contracts. The ability to streamline all business operations depends on a firm grasp of critical contract governance areas. In today’s volatile regulatory climate, it is essential for energy firms to have a flexible contract management system that can keep up with the demands of a wide range of stakeholders.

What makes Oil and Gas contract management successful? Due to the high stakes and intricate nature of the oil and gas industry, it is crucial to have a defined chain of command for the transfer of contracts after they have been signed. What steps are necessary for the successful execution of each contract provision, and who is accountable for carrying out and/or monitoring each action, must be established. Establishing an early detection system that enables issues and dangers to be discovered early and corrected as soon as feasible is crucial in reducing the impact of under-delivering. Unrealized returns often result from value leakage. Contracts should be fulfilled to their maximum potential with a strategy in place to track value loss and any threats.

What are some KPIs for gauging how well Oil and Gas contracts are being fulfilled? With the use of Key Performance Indicators (KPIs), contract managers may track their teams’ progress toward contract-based objectives. Key performance indicators (KPIs) have a role in motivating actions and may have a major impact on outcomes and projects if they are well designed and implemented. Key performance indicators include annualised contract value, terminated contract remaining value, order value variance from original contract value, supplier malfeasance, contract adherence, and complaints resolved.

Learners taking Zoe Talent Solutions’ Oil and Gas Contract Management Training Course will get a deep familiarity with how the modern oil and gas industry functions. Oil and gas contracts are the backbones of the company and the sector. This will provide students with a foundation for comprehending the rights and responsibilities of both the host country and the operators, as well as how they are established and spelled out in oil and gas contracts. To offer a comprehensive grasp of the legal underpinning for licencing, production sharing contracts, and service agreements, the underlying legal structures will be identified and addressed. Common business contracts including buy and sale agreements and transportation agreements will also be covered. This course will offer students a grounding on the essential risk management measures included in oil and gas contracts. Participants will acquire knowledge on safeguarding capital in the oil and gas sector.

Course Objectives

The Oil and Gas Contract Management Course by Zoe Talent Solutions aims to fulfill the following objectives:

• To learn and understand the legal concepts that apply to oil and gas contracts
• To learn everything there is to know about contracts including licencing, production sharing, and service provision
• To learn about potential risks and use proper contractual clauses to lessen those risks
• To improve the participant’s management and bargaining abilities during transactions
• To recognise, evaluate, and control the most important types of contractual risks
• To oversee the liability and force majeure clauses
• To understand ways to examine important clauses
• To outline the most effective methods of supply chain management
• To gain knowledge of methods for settling international oil and gas conflicts

Training Methodology

The training will utilize the following training methods:

• Lectures by the experienced international practitioners
• Case studies: examination and evaluation
• Interactive discussions about challenges and possible solutions
• Individual and group exercises
• Contract management activities
• Presentations and plenary discussions

This course follows our broadly utilized “Do-Review-Learn-Apply” framework, just like all our other courses.

Organisational Benefits

This training course from Zoe Talent Solutions will benefit an organisation in the following ways:

• Oil and gas contracts, licencing, and production rights will be familiar to the organisation’s personnel, ensuring better contract management
• Understanding the legal ideas behind licencing, production sharing, and service agreements can help the organisation negotiate
• Organisations can forecast and handle energy contract difficulties and implications
• Organisation will witness better risk management strategies that are used for oil and gas contracts
• Internal management’s ability to address contractual risks will be improved
• Alternative approaches to minimise the impact of risks and disagreements on the organisation will be researched

Personal Benefits

This training course from Zoe Talent Solutions will benefit a participant in the following ways:

• Gain skills needed to negotiate provisions in oil and gas contracts
• Learn to use well-drafted contract provisions, manage production and commercial risks, and ensure advancement in your career
• Develop the capacity to create a well-thought-out contracting strategy
• Gain familiarity with various contract provisions
• Manage contract term changes and the differences in approach between standard and customised contracts
• Understand various contracting tactics to achieve the organisation’s objectives
• Learn approaches for managing supplier performance
• Learn to examine the most effective methods of dispute settlement
• Improve the capacity to bargain during transactions confidently and successfully

Who Should Attend?

This course is suitable for:

• Commercial and Contracting Experts
• Professionals in Commercial Operations
• Engineers on contract, administrators, and managers
• Legal Counsellors and Managers
• Managers of commerce and industry
• Professionals in business, finance, and insurance
• Management of Projects and Operations

Course Outline

Module 1: Oil and Gas Contracts

• Oil and Gas Contracting Principles
• Mutual Interest and Exclusivity
• Allowances/Licenses
• Contracts for Services and Work
• Contracts involving more than one party

Module 2: Supply Chain Management

• Acquisition Best price overview
• Identification and Management of Risk in the Supply Chain
• Developing the Workspace
• Eligible Vendors
• Management of the Supply Chain
• Award and implementation of contracts
• Subornation and corruption

Module 3: Key Contractual Issues and their Resolution

• Penalty and Performance
• Compensation and Liabilities
• Payment and Pricing
• Force Majeure
• Termination
• Requirements for Local Content

Module 4: Controlling Contract Efficiency

• Recognizing and Managing Supplier Risk
• Service level agreements (SLAs)
• Indicators of Key Performance
• Changing the Work Scope
• Liability Limitation and Exclusion
• Bonds, Guarantees, and Warranties

Module 5: Dispute Resolution in the Petroleum Industry

• Damages and Other Reparations
• Negotiation, Compromise, and Resolution
• Third-party disputes
• Arbitration vs. Litigation
• Measures of Enforcement
• Questions and Final Review in the Open Forum

Module 6: Managing Contractor Efficiency

• Obtaining and maintaining contract performance from suppliers
• Levels of service agreements
• Establishing SMART targets
• Identifying KPIs
• Governance of Contracts
• Why is performance crucial?
• Post-Contract Measures