Upstream Oil and Gas Contracts Training Course

Participants can develop a contract strategy matched to project scope, market conditions and risk.

• Contracting strategy aligned with field development plan milestones
• Make-or-buy analysis for operator-delivered and contractor-delivered work
• Packaging options for drilling, EPC, operations and maintenance services
• Market sounding methods for supplier capacity and capability assessment
• Single-source justification supported by technical and commercial evidence
• Contract strategy paper structure, approvals and decision records

Participants can select appropriate contract structures and model forms for upstream work packages.

• Lump-sum, reimbursable and unit-rate commercial models compared
• AIPN model contracts and their upstream transaction applications
• LOGIC standard contracts for offshore and onshore service work
• EPC, EPCM and construction management delivery model differences
• Call-off agreements, master service agreements and purchase orders
• Alliance and incentive arrangements for uncertain technical scope

Participants can create a contract scope that defines deliverables, interfaces and acceptance requirements.

• Scope of work hierarchy from basis of design
• Deliverable registers linking documents, equipment and completion evidence
• Interface matrices assigning boundaries between multiple contractors
• Acceptance criteria tied to inspection, testing and commissioning
• Work breakdown structures converted into procurement package boundaries
• Assumptions, exclusions and battery limits stated without ambiguity

Participants can allocate project risks to the party best able to manage them.

• Risk allocation matrix connecting hazards, ownership and contract clauses
• ISO 31000 principles applied to upstream contract risk reviews
• Knock-for-knock indemnity structure for oilfield service contracts
• Consequential loss exclusions and agreed definitions of recoverable losses
• Force majeure provisions tested against supply disruption scenarios
• Insurance schedules covering property, liability and well-control exposures

Participants can plan a controlled tender process with clear governance and decision records.

• Procurement plan linked to project schedule and long-lead items
• Prequalification criteria covering technical, financial, HSE and ethical capability
• Tender timetable including clarification, submission and approval milestones
• Bidder communication protocol preserving equal treatment and confidentiality
• Delegated authority matrix for tender approvals and contract award
• Tender governance file containing decisions, records and approvals

Participants can assemble tender documents that obtain comparable and contract-ready bids.

• Invitation to tender instructions defining bidder submission requirements
• Commercial schedules for pricing, rates, escalation and payment terms
• Technical bid forms structured around scope deliverables and assumptions
• HSE requirements aligned with operator standards and contractor responsibilities
• Local-content reporting requirements embedded within tender return schedules
• Bid validity, tender securities and proposal withdrawal provisions

Participants can evaluate bids objectively and prepare a defensible award recommendation.

• Weighted evaluation criteria separating technical, commercial and HSE factors
• Bid compliance checks identifying qualifications, deviations and omissions
• Clarification logs distinguishing permitted clarification from bid amendment
• Total evaluated cost calculated using rates, escalation and lifecycle assumptions
• Evaluation consensus meetings documented with scoring rationale
• Award recommendation report presenting value, risk and approval requirements

Participants can select and administer pricing mechanisms suited to upstream scope uncertainty.

• Day-rate schedules for rigs, vessels and specialist personnel
• Unit-rate pricing tied to measurable quantities and certification rules
• Cost-reimbursable controls for allowable costs, mark-ups and audit rights
• Target-cost mechanisms using pain-share and gain-share formulas
• Price escalation clauses based on stated indices and review dates
• Currency, tax and customs provisions affecting contract value

Participants can plan and conduct negotiations on priority commercial and operational issues.

• Negotiation preparation using interests, positions and BATNA analysis
• Issue registers ranking clauses by value, risk and negotiability
• Concession plans defining authority limits and conditional trade-offs
• Opening positions framed around evidence, standards and project needs
• Minutes of negotiation recording agreements, reservations and actions
• Contractual redlines controlled through version management and approvals

Participants can establish administration controls before contractor mobilisation begins.

• Contract award notices, conditions precedent and execution formalities
• Mobilisation plans linking personnel, equipment, permits and readiness dates
• Kick-off meeting agenda covering scope, governance and communications
• Contract administration plan defining roles, records and reporting cycles
• Authority-to-instruct rules preventing unauthorised scope commitments
• Baseline schedule and performance measures agreed before work starts

Participants can monitor contractor performance and address emerging delivery problems.

• Key performance indicators for safety, schedule, quality and productivity
• Service level agreements with reporting frequency and corrective actions
• Monthly contract review meetings structured around agreed performance data
• Early warning notices for emerging technical or schedule risks
• Corrective action plans with owners, dates and closure evidence
• Contractor scorecards supporting renewal, improvement and future sourcing decisions

Participants can control scope changes through formal instruction, evaluation and approval processes.

• Change control procedure from request through approval and implementation
• Variation orders defining scope, price, schedule and contractual basis
• Technical change notices assessed for downstream commercial consequences
• Time impact analysis supporting extension-of-time decisions
• Change register tracking status, authority and cumulative value
• Field instructions distinguished from formal contractual change authorisation

Participants can verify contractor payments and maintain cost evidence for contract assurance.

• Payment applications checked against milestones, quantities and supporting records
• Invoice certification workflow with technical and commercial approval points
• Retention, holdback and release conditions applied to completed work
• Open-book cost verification using timesheets, invoices and allocation records
• Audit rights covering records access, retention periods and remedies
• Accrual forecasts reconciled with commitments, variations and invoices

Participants can assess claims using contractual entitlement, factual records and cost evidence.

• Claim notice requirements, time bars and reservation of rights
• Entitlement analysis linking events to contract clauses and obligations
• Contemporaneous records supporting instruction, delay and disruption evidence
• Causation tests separating contractor risk from operator-caused events
• Quantum assessment using cost records, productivity data and rate schedules
• Claim response letters preserving rights while seeking factual clarification

Participants can select proportionate dispute avoidance and resolution methods for contract disagreements.

• Dispute escalation ladders from project teams to executive management
• Without-prejudice settlement discussions and protected negotiation records
• Mediation process, party roles and settlement agreement essentials
• Expert determination for technical valuation and measurement disputes
• Arbitration clauses addressing seat, rules, language and tribunal appointment
• Lessons-learned reviews converting disputes into contract improvements

Participants can embed non-commercial obligations within upstream contract management controls.

• HSE management system obligations translated into contractor deliverables
• Permit-to-work interfaces between operator and contractor control systems
• Security requirements for remote facilities, vessels and personnel movement
• Anti-bribery clauses, due diligence and reporting escalation routes
• Sanctions screening and export-control obligations within supplier onboarding
• Local-content plans monitored through workforce, spend and supplier records

Participants can adapt contract controls for long-term operations and end-of-life obligations.

• Operations and maintenance contracts structured around asset availability targets
• Shutdown and turnaround scopes controlled through integrated work packs
• Integrity management services linked to inspection plans and anomaly closure
• Call-out arrangements defining response times, mobilisation and standby rates
• Decommissioning liabilities allocated through security, liability and completion provisions
• Close-out checklists covering records, warranties, releases and final accounts

Participants can create contract reporting that supports timely commercial and operational decisions.

• Contract register fields covering value, term, owner and status
• Obligation tracker monitoring deliverables, notices, insurances and certificates
• Commercial dashboard showing commitments, changes, claims and payment status
• Risk register updates linked to contractor performance and emerging events
• Document control protocol for correspondence, approvals and contractual notices
• Management reports focused on decisions, exceptions and required actions

Participants can build, review and present a complete contract management pack for an upstream work package.

• Contract strategy addressing scope, market, risks and delivery model
• Scope of work with deliverables, interfaces and acceptance criteria
• Risk allocation matrix supported by insurance and indemnity provisions
• Tender evaluation plan including weighted criteria and governance controls
• Contract administration plan covering performance, changes, payments and claims
• Executive presentation defending decisions, controls and recommended contract award