Contracts in the Oil and Gas Industry Training Course - Understanding and Drafting Oil and Gas Industry Contracts

Introduction

Essentials of contract law

• Contracts and Torts
• Nature of contract law – liability is strict unlike in Tort
• Certainty more important than fairness
• Understand what you sign
• Fundamental breach -v- breach of fundamental obligations

Two kinds of energy contract

• Investor contracts: joint ventures and production sharing agreements
• Construction and service contracts
• Confidentiality and non-disclosure agreements
• Exclusivity agreements

Joint operating agreements and alliances

• Relationship between the parties
  • Scope
  • Interest of the parties
  • The role of the Operator
  • Rights and duties of the Non-Operator
• Risk allocation within JOA
  • Penalties for default

Drafting agreements for offshore design, engineering and construction work

• Including EPC contracts (engineer procure construct)
• Basic features of an EPC contract
• Key oil and gas specific clauses
• Key performance clauses
• Performance guarantees & liquidated damages

Frustration and Force Majeure in the energy business

• Dealing with the unexpected – covid, wars, price rises etc
• Frustration is the common law doctrine but is very narrow so consider using FM clauses to increase your ability not to be bound by unexpected events
• Wording is very important 

Dealing with disputes in oil and gas contracts

• Choice of method
• Litigation
• Arbitration
• Mediation
• Expert determinations

Choice of jurisdiction

• Contracts can be governed by the law and jurisdiction chosen by the parties
• Difference between law and jurisdiction
• Why English Law is the preferred jurisdiction for global commerce, including energy

Final questions