Transcript of "Contract Drafting and Risk Management Training for Oil & Gas 2.0 Europe "
Oil & Gas IQ presents Jim Bergman VP of Learning & DevelopmentContract Draftingand Risk ManagementTraining for Oil & Gas 2.0 29-30 October, 2012 Mercure Aberdeen Ardoe House Hotel and Spa, Aberdeen, UK Discover the very best methods in oil and gas contract drafting, negotiation and clarification Whether you are an operator or contractor, major player or SME, it is essential to ensure your contracts are as reliable as possible when settling a dispute or facing a catastrophe. Attending Contract Drafting and Risk Management Training for Oil & Gas 2.0 will help you: • Develop your understanding of negotiating risk in the post-Macondo era • anage and mitigate risk through examining limitation of liability, knock for M knock and termination clauses • nderstand the risks associated with FEED, EPC, EPCIC and EPCICM contracts U • nsure your company is compliant with local content, HSE and environmental/ E pollution clauses Training Programme • nderstand the challenges in international contracts and the implications on U your business • Manage project delays and damages through effective contracting Attend and earn CPD Hours plus 12 months membership to the IACCM www.ContractRiskTraining.com
This training course has been specifically designed inreaction to an in-depth industry research survey carried outby Oil Gas IQ at the beginning of the year. Having listenedto the industry we will be addressing the challenges andrequirements raised by legal professionals working withintoday’s oil and gas landscape.The programme, led by the IACCM, is a truly hands-on and practical experience that will inform,challenge and equip you with the necessary skills to negotiate and build market leading oil and gascontracts.Delegates and organisations worldwide have benefitted from the training that the IACCM has offered.They understood the fundamental importance of drafting and negotiating a contract effectively inorder to mitigate risk, improve a project’s value and ensure its longevity. Whether you are a seasonedprofessional or brand new to the world of contract risk management, this course will allow you to trulyunderstand every facet of the new contract market in which oil gas organisations arerequired to work. “A good interesting seminar.” - StatoilHydroAbout IACCMThe International Association for Contract Commercial Management (IACCM) is a non-profit membership organizationfirst incorporated in 1999. The Association provides a global forum for innovation and collaboration in trading relationshipsand practices. It offers unique insights to the purpose and contribution of the contracting and relationship managementprocess in both public and private sector. The IACCM membership currently includes representatives from more than2,000 public and private sector organizations, typically those with large revenues, international interests and dealing withcomplex or high-risk contract relationships. Over 2,000 individual members in IACCM’s ranks are currently in the Oil, Gasand Petrochemical sector.Meet Your Contract Risk TrainerJim BergmanIACCM - VP Training Jim Bergman has led the development and implementation of numerous innovative contracting practices in global, leading organisations. He has nearly twenty years of experience in commercial and procurement contract development, negotiation and management, initially as a contracts attorney for Amoco. During his career, Mr. Bergman has shared his ‘in the trenches’ experiences through the development and delivery of numerous training sessions and has effectively led contract development and negotiation teams.About Oil Gas IQOil Gas IQ provides over 100 technical and strategic events across Europe, Asia, the US and the MiddleEast every year, educating almost 5,000 high-level executives annually. Through our website, enewsletter andconferences we seek to keep the industry in the know about the latest issues that affect your bottom line.Our members and delegates benefit from a culmination of 100% industry research and practical informationand tools that solve critical everyday business problems.www.oilandgasiq.co.uk
Training ProgrammeEach session includes case study examples and a comprehensive practical exercise Day One 29th October 20129:00 AM Coffee Registration Integrating superior contracting practices into services andManaging risk through FEED, EPC, equipment agreementsEPCIC and EPCICM contracts • Understanding the purpose of marine and • nderstanding the scope of the various contract U transportation contracts formats - and the risks/benefits • Ensuring delivery does not become a problem • itigating the risks in the documents - both M • Defining the roles of the contracting professional internal and external regarding these contracts• electing and drafting the proper contract form S • Terms and conditions of special relevance - from force majeure to acceptance testing• rafting clauses specific to FEED, EPC, EPCIC D and other similar service contracts Managing and mitigating risk: Limitation of liability, knock forMaximising value through drilling knock and termination clausesand wellhead services • Exclusions/Limitation of liability for Contractor • efining value in contracting D Insurance Payment securities• stablishing procedures of drafting contracts E • Supplier liability and risk assessments. for maximum value Flow-down of indemnification requirements• onducting contract value assessments - C • ‘Termination for convenience’ provisions, retention of title and other mechanisms for identification, evaluation, control methods protecting contractors in the event of client and measures bankruptcy.•Exploiting sources of value - the SOWs, • Indemnity split between operator and contractor SLAs, KPIs, terms and conditions, and overall • Indemnities under contract and their strength management in real life scenarios Creating a financial advantageCapturing greater contractual through financial terms andopportunities through multi-party remuneration modelsand joint ventures • nderstanding the primary remuneration U• Developing the business case to use a models: fixed fee, unit based and cost plus multi-party, or joint venture model •Calculating the cost attached to contract risk • Allocating risks throughout the parties, and management contractors through effective contracting •Establishing a process for identifying, tracking • Managing change orders in a joint venture and managing contract costs based contract •Anticipating the cost of cancellation/termination, • Terminating the contract and dissolving the or the non-utilisation of contracted assets multi-party or joint venture relationship 5:00 PM Close of Day One
Training ProgrammeEach session includes case study examples and a comprehensive practical exercise Day Two 30th October 20129:00 AM Coffee Registration Understanding the challenges inAddressing requirements through international contractsvariations and change orders • Updating current international issues which are affecting or considered as new risks in• anaging contract variation, claims and M contracting incentives • Navigating the various laws and legal • Foreseeing and contractually addressing requirements of different countries, especially changes of circumstances through effective emerging markets contracting processes • Understanding currency exchange and tax • Developing standard contract clauses that issues protect against the exceptions, such as limit of liability provisions • Outlining entry strategies and exit strategies •Drafting and optimal litigation, arbitration/ for the contracting professional mediation, force majeure and hardship clauses Working with National OilEnsuring external compliance Companiesthrough local content, HSSE and • Understanding the overall relationship with environmental/pollution clauses NOCs• Defining compliance for both internal • Defining the risks related to liabilities, and external issues indemnities, applicable law, and other provisions•Integrating HSSE within overall contract • Complying with the NOC’s contracting and operational management processes, policies and objectives•Considering alternatives to local content • Reviewing the NOCs and their contracting provisions and strategies nuances•Understanding the impact of environmental and pollution clauses Managing project delays and damages through effectiveNegotiating risk in the post- contractingMacondo era Reviewing what • Defining the roles and responsibilities related happened in Macondo, or Deep to contract risk managementWater Horizon • Selecting the key actors and key methodologies • Determining whether this could happen again - • Understanding recoverable and non-recoverable under current contracting models delay costs in contracts where consequential• Adapting to the post-Macondo scenario through damages are excluded risk mitigation and risk allocation techniques • Utilising tools for project risk tracking and risk • Understanding how the Macondo litigation has management. impacted risk allocation and liability for fines and penalties 5:00 PM Close of Day Two Start your learning experience at www.contractrisktraining.com Visit our online download centre with industry resources such as podcasts, articles, interviews and much more. And it’s all completely free to access!