Why Contracts Matter in the Evolving Oil and Gas Industry
The oil and gas sector is one of the most dynamic and critical industries in the world, with more than 60% of the world’s energy supplied by oil and natural gas. As a result, the oil and gas industry plays a significant role in contributing to the global economy. The President of the World Bank, Jim Yong Kim, noted that, “Energy is a critical part of boosting prosperity and eradicating poverty.” However despite the importance of the industry in global affairs, it still faces significant challenges and risks in key areas.
The combination of economic uncertainty, geopolitical risk and supply disruptions have fuelled volatility in oil and gas prices, and given the petroleum industry several turbulent years. This, when also considering the increased competition for reserves and the forcing of upstream companies to drill in increasingly remote, difficult and inhospitable locations has led to not only the intensification of pressure, but also renewed scrutiny of operation.
Yet it is not only external factors that are contributing to change: the industry faces a number of major operational structural changes, including a shift in consumption from the west to the east, and the rise of non-conventional hydrocarbon sources, such as shale gas, oil sands and biofuels, not to mention the rise in renewable energy sources.
The continued accelerated pace of change in the oil and gas industry, its unique contract matrix, and high levels of investment combine to make it one of the worlds most challenging and complex sectors in which to understand draft and negotiate contracts.
Petroknowledge recognises the challenges of this evolving industry, and has developed a unique course on Oil and Gas Contracts that considers and covers both upstream and downstream operations. The course also looks at:
- Major types of contract found in the oil and gas sector
- Best practice in supply chain management
- Key legal and commercial risk management issues
- International dispute resolution frameworks
- Negotiation tools and techniques
When designing this course, PetroKnowledge set out to ensure that all participants would expand their knowledge of contracts and contract management through interactive and engaging presentations by an experienced international practitioner designed to both educate and challenge.
To find out more about PetroKnowledge, and this course on “Oil and Gas Contracts” please do not hesitate to contact one of our training consultants, who will be able to assist you with all your professional development needs.
