Course Introduction

 

 

The oil and gas industry is evolving at an unprecedented pace, with high levels of investment and ever-changing market dynamics. In this complex landscape, mastering commercial contracts is essential for protecting business interests, mitigating risks, and ensuring seamless operations. Commercial Contracts form the backbone of all commercial relationships, influencing every aspect of business from constructing major assets to procuring goods and services. A deep understanding of contract management enables organizations to control costs, align procurement with business needs, and safeguard against contractual risks that could impact operations and profitability.

This course provides attendees with in-depth knowledge of commercial contract development, differentiation between contract types, and the creation of standard contract conditions. Participants will gain expertise in key contracting terms, as well as the philosophy, evolution, and fundamentals of contract preparation and implementation.

 

Through practical exercises and real-world case studies, attendees will engage in tender preparation, risk management, and claims avoidance during contract development and execution.

 

 

 

Objectives

By the end of the course, participants will be well-equipped with both theoretical knowledge and practical skills to excel in commercial contract management and will be able to:

 

• In-Depth Knowledge of Commercial Contracts
• Practical Contract Development Skills
• Expertise in Tender Preparation & Evaluation
• Risk Management & Dispute Resolution
• Industry-Specific Insights (Oil & Gas Focus)
• Enhanced Professional & Leadership Skills

 

 

 

Outline 

 

Day (1):

The Importance of Contracts

• What is a contract
• Difference between contract and agreement
• Introduction to contract drafting
• Components of contracts
• Contracts four attributes
• Traditional & Innovative Structures

• Collaboration contracts
• Incentive contracts
• Advantages and disadvantages of using templates
• Effective date of contract and coming into force

 

 

Day (2):

Drafting Specific Clauses

• Performance of the work
• Subcontracting
• Payment obligations
• Changes and variations
• Intention to create legal relations

Contract Liability

• Structuring a contract (clauses, definitions, recitals, schedules)
• Controlling Liability
• Common contract clauses (e.g., warranties, indemnities, liabilities)
• Liquidated Damages
• Termination

 

 

Day (3): 

The Negotiating Process

• The art of negotiation
• Understanding stakeholder interests
• Techniques for successful negotiations
• Managing risk and achieving a balanced agreement
• Characteristics of a good negotiator
• Negotiation tips and tactics

 

 

 

 

 

Key Commercial Terms & Clauses

• Payment terms and pricing structures
• Delivery obligations and performance requirements
• Intellectual property rights and confidentiality
• Force majeure and unforeseen circumstances
• Limitation of liability and indemnity clauses

 

 

Day (4):

Claims Management and Claims Prevention

• Documentation and planning needs
• Logical and inclusive risk distribution.
• Scope assessment and contractor requirements
• Distribution of information to meet contract purpose
• Responsibilities of parties and stakeholders
• Policy and commerciality of disputes
• Methods of improving claims outcome
• Variation clauses and contractual flexibility

 

 

 

Day (5):

Contract Compliance & Enforcement

• Monitoring Contractual Performance
• Remedies for breach of contract
• Litigation vs. alternative dispute resolution (ADR)
• Compliance with international laws
• Ethical considerations in commercial contracts
• Service level agreements (SLAs)
• Supplier and vendor contracts
• Joint venture and partnership agreements
• Licensing and distribution agreements