Training on Oil and Gas Contract Management and Procurement

Module 1: Oil and Gas Contracting Landscape

• Types of contracts: EPC, drilling, well services, seismic, and production sharing agreements (PSAs).

• Key players: NOCs, IOCs, contractors, and service companies (Schlumberger, Halliburton, Baker Hughes, etc.).

• Contracting strategies: bundled vs. unbundled, local vs. international.

• Case Study/Hands-on Exercise: Analyze a contracting strategy for an offshore drilling campaign, comparing bundled EPC vs. separate rig, drilling services, and supply contracts.

Module 2: Procurement Lifecycle in Oil and Gas

• Pre-qualification of suppliers and contractors.

• Request for proposal (RFP), request for quotation (RFQ), and invitation to bid (ITB).

• Bid evaluation, technical and commercial analysis.

• Case Study/Hands-on Exercise: Develop an RFP for a drilling services contract, including scope of work, technical requirements, and commercial terms.

Module 3: EPC (Engineering, Procurement, Construction) Contracts

• EPC contract models: lump sum turnkey (LSTK), reimbursable, and target cost.

• Risk allocation: force majeure, change orders, and delay damages.

• Schedule, quality, and performance guarantees.

• Case Study/Hands-on Exercise: Evaluate an EPC contract for a pipeline construction project, identifying key risk clauses and proposing amendments.

Module 4: Drilling and Well Services Contracts

• Day rate contracts vs. footage rate contracts.

• Integrated drilling services contracts.

• Incentive mechanisms: bonuses, penalties, and key performance indicators (KPIs).

• Case Study/Hands-on Exercise: Negotiate a day rate drilling contract for an onshore rig, including rates, mobilization, demobilization, and performance incentives.

Module 5: Master Service Agreements (MSAs) and Call-Off Orders

• Structure of MSAs for ongoing services: maintenance, logistics, and consulting.

• Call-off orders, rate sheets, and service level agreements (SLAs).

• Advantages of MSAs for rapid deployment.

• Case Study/Hands-on Exercise: Draft an MSA structure for logistics services to support an offshore field, including rate sheets, liability, and termination clauses.

Module 6: Local Content and Regulatory Compliance

• Local content requirements in oil and gas contracts (e.g., Nigeria, Brazil, Angola).

• Supplier development and joint venture requirements.

• Compliance with anti-corruption laws (FCPA, UK Bribery Act) and ethics policies.

• Case Study/Hands-on Exercise: Develop a local content compliance plan for an EPC project, including supplier sourcing, local hiring, and reporting obligations.

Module 7: Contract Risk Management

• Identifying and mitigating contractual risks: cost overrun, schedule delay, and performance failure.

• Indemnities, liability caps, and insurance requirements.

• Dispute resolution: negotiation, mediation, arbitration, and litigation.

• Case Study/Hands-on Exercise: Conduct a contract risk assessment for a seismic acquisition contract, identifying key risks and proposing mitigation measures.

Module 8: Contract Administration and Performance Management

• Contract administration: invoices, change orders, and correspondence.

• Performance monitoring against KPIs and service levels.

• Managing contract amendments and extensions.

• Case Study/Hands-on Exercise: Administer a change order for a drilling contract, evaluating cost impact, schedule adjustment, and obtaining approvals.

Module 9: Claims, Variations, and Dispute Resolution

• Managing contractor claims (delay, disruption, variation).

• Variation order process: identification, pricing, and approval.

• Dispute resolution mechanisms and preparing for arbitration.

• Case Study/Hands-on Exercise: Evaluate a contractor's claim for additional costs due to unforeseen ground conditions, assess liability, and recommend a settlement or dispute path.

Module 10: Contract Close-Out and Lessons Learned

• Close-out procedures: final acceptance, punch list, and final accounting.

• Warranty periods and post-completion obligations.

• Capturing lessons learned for future contracts.

• Case Study/Hands-on Exercise: Develop a contract close-out plan for an EPC project, including documentation, final acceptance, and lessons learned workshop.