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Understanding & Drafting Upstream Oil & Gas Contracts - An Advanced Masterclass

Learn how contracts are used in upstream oil and gas commercial agreements, presented by an expert in two interactive and informative days.

Find out more

  • Format: Bespoke training
  • CPD: 12 hours for your records (depending on your requirements)
  • Certificate of completion

Course Overview

This two-day In-house programme has been designed to inform contracts teams about the legal and regulatory framework of upstream oil and gas industry contracts. The programme is based on practical workshop sessions and real-life scenarios and reflects the unique and comprehensive experience of the expert trainer.

What are the objectives of this training?

By running this In-house training your contracts team will:

  • GAIN in-depth knowledge and further understanding of more agreements that are in common use in the upstream oil and gas industry
  • FIND OUT more about the essential bidding and tendering phase
  • BECOME familiar themselves with production sharing contracts
  • LEARN about how to deal with negligence and nuisance claims
  • RECOGNISE the importance of the five key clauses that every oil and gas professional should be familiar with
  • MASTER the drafting of service agreement contracts
  • UNDERSTAND the importance of contract risk management Post Macondo

Programme - Day 1

Bidding and tendering for oil and gas contracts
  • Tender preparations
  • Evaluation resources
  • Preparing your finished submission
  • Confidentiality at the bidding stage
  • Practical examples
Drafting Production Sharing Contracts – PSCs
  • Different approaches and levels of complexity
  • New PSC’s in key jurisdictions
  • The role of calculation
  • Understanding the formulas
  • The non-fiscal legal and contractual terms
  • Contractual terms and conditions
  • Royalties and taxes
  • Practical examples
Drafting agreements for farm-ins and farm-outs
  • The role of the ‘MAC’ clause
  • What is a ‘MAE’ clause?
  • Assignment of interest
  • Nature of the farm-out
  • Subject matter of the farm-out
  • Earning requirements
  • Interest assigned and reserved
  • Practical examples


Dealing with negligence and nuisance claims
  • What is Hydraulic Fracturing legislation?
  • Claims based on abnormally dangerous activity
  • Claims based on subsurface transfers
  • What are companies required to report?
  • Breach of contract claims
  • Nuisance claims
  • Surface use agreements
  • Practical examples


Five key clauses that every oil and gas professional should be familiar with
  • Termination clauses
  • Penalty clauses
  • Force Majeure clauses
  • Indemnity clauses
  • Third party indemnity clauses

Programme - Day 2

Key equipment and materials contracts
  • Capital equipment agreements
  • Drafting equipment rental and lease agreements
  • MRO
  • Drilling equipment rental and lease agreement
  • Ensuring a reliable supply of materials in remote places
  • Practical examples
Drafting service agreement contracts
  • Different model forms – sources
  • Applicable systems of general contract law
  • Basic general provisions
  • Contract formation issues
  • Performance and non-performance issues
  • Risk allocation and insurance
  • Enforcement
  • Master service contracts
  • Problems involving long-term master service relationships
  • Maintenance services
  • Well completion services
  • Practical examples
Multi-party contracting scenarios including teaming agreements
  • Contractors and sub-contractors creating a seamless support team
  • Teaming agreements – risks and rewards
  • Crude and production distribution agreements
  • Joint ventures in the oil industry
  • Practical examples
Production and decommission phase agreements
  • The main form of a crude oil sale agreement
  • Abandonment, decommissioning and restoration
  • The principle contracts for the end of the lifecycle of a petroleum field
  • Principle methods of payment under the agreement
  • Principle forms of crude oil sale agreements
  • The role of letters of credit
  • Practical examples
WORKSHOP SESSION Contractual risk management post Macondo
  • Mitigation of risks
  • Drafting and negotiating exclusion clauses
  • Drafting and negotiating indemnity clauses
  • Summary of the legal implications
  • Indemnities and liabilities
  • Developments in EHS law post Macondo
  • Legal considerations and decommissioning
  • Practical lessons for a post-Macondo world

Jim Bergman

Jim Bergman has extensive contracting and negotiation experience in both supply management and sales contracting. Jim serves as Vice President of IACCM for APAC and the Middle East. Prior to joining IACCM, Jim was a contracts attorney for a Fortune 500 petrochemical corporation, Amoco Corporation, and was responsible for legal, tendering and negotiations support to the procurement staff. He supported multiple locations globally, where he addressed commercial and legal issues in transactions valued up to and greater than $1 billion.
Jim’s experience encompasses developing, negotiating and managing contracts for a wide array of projects with multiple clients in the petrochemical / oil and gas sector. He has been extensively involved in establishing many successful and innovative customer-supplier commercial relationships. He has also developed and delivered both public and internal training programs for the petrochemical / oil and gas sector in many topics regarding tendering, strategic sourcing, contracting, outsourcing, law and negotiations.
As a strategic management consultant, Jim has assisted numerous clients through all phases and steps of contract development, contract drafting, contract negotiation and contract management processes, demonstrating savings in excess of $300 million. His audiences and clients have included attorneys, plus financial, operational and sourcing professionals from multinational corporations and the public sector, including BHP Billiton, BP, Carigali Hess, Chevron, ConocoPhillips, Dana Gas, DuPont, Egyptian Petrochemicals Holding, ExxonMobil, GASCO, Halliburton, Hess, Japan Vietnam Petroleum, Petrofac, Petronas, Petrovietnam Gas, PGNiG SA Egypt, RasGas, Saudi Aramco, Schlumberger, Shell, the State of California, the State of Florida, the State of Texas, Vietnam Oil and Gas Group, and VRJ Petroleum Company.
Jim holds a Law Degree and an MBA and is licensed to practice law in Illinois, Texas and Oklahoma, as well as various US federal courts.

More details

Run Understanding & Drafting Upstream Oil & Gas Contracts - An Advanced Masterclass Bespoke training for your team

2 days

Typical duration

Pricing from:

  • GBP 800
  • Per attendee
  • Course tailored to your requirements
  • At your choice of location, or online


We don't have any currently scheduled dates for this course but we can customise it to your requirements and deliver it on an in-house basis for any number of your staff or colleagues.

Contact our in-house training expert Aleksandra Beer to discuss your requirements:

Multiple colleagues?
Talk to one of our training experts to discuss how to:

Run this course conveniently and cost-effectively in-house for your staff and colleagues

Aleksandra BEER
Training expert

+44 (0)20 7749 4749