Course ID 014E:  Legal Risk & Service Contracts in Petroleum Industry       July 16 -18  *  Houston

The Macondo blowout or Deep Water Horizon oil spill in the Gulf of Mexico was a major disaster that caused loss of lives, equipment and revenues. The disaster generated avalanche of litigations among BP (Operator), Transocean (Rig owner), Halliburton (Service Company) and other parties including Gulf States in the United States of America.

 

Compensations amounting up to billions of dollars are been paid out, and some parties involved may not be adequately compensated due to various reasons. The Deep Water Horizon situation has brought about many questions in law, risk management and insurance facilitation in the petroleum industry and beyond. When event such as the Macondo blowout occurs, who will bear the risk?  Such disaster often involves loss of lives, those that will be crippled for life, debilitating injuries, medical expenses, payment to survivors, physical equipment damage, replacements, loss of revenue, etc.  The big question that often leads to litigation, if not well handled is:  WHO TAKES CARE OF WHAT?    HOW WILL THE RISK INVOLVED BE SHARED? The knowledge of what to do helps in planning ahead and making sound management decision.

 

For instance in the case of environmental pollution where a fishing ground is destroyed, it becomes important to determine who is injured and for how long. Is it the community, country, or people whose livelihood depends on fishing? How would parties involved take care of consequences of events (extra ordinary) through insurance? For example if a platform is destroyed, will insurance cover cost of destroyed platform, cost to build new one, and loss of production for time spent?

 

This training course is aimed at equipping participants with various legal and insurable risk involved in service contracts, and tools to manage such risk and also get them prepared for consequences when questions start coming. The overall interest is to protect the company’s health, fairness to stakeholders, ensure adequate risk distribution, compensation ensure creation of values without tears of litigation.

 

Course Outline:

  • Introduction to Exploration & Production in Petroleum Industry   

  • Changes Affecting the Industry

  • Contracts and Fiscal Terms in the Oil and Gas Industry

  • Description of Master Service Contract

  • Why Master Service Contracts are used?

  • Major Provisions of Master Service Contracts

  • Allocation of Liability & Risk

  • How do you risk operators?

  • Risk Analysis, Identification, Evaluation, Management

  • Role of InsuranceArbitration & ClausesChoice of Law

  • Contract Integration

  • Perspectives of Operators/ Service Companies

  • Offshore:  Maritime ChartersFPSO, Vessels, FPU

  • Kinds of vessels and roles

  • Insurable Risk on vessels and Equipment

  • Insurable Risk on Processes

  • Simulations

  • Environmental Risk

  • Issues – fire, Insurrection, war, earthquake, storm, security threat

  • Normal Risk – Storm, Hurricane

  • Extra –Ordinary Events – Terrorism, war

  • Risk management and value creation

 

Who Should Attend

  • Directors, senior management of all spheres, finance, operations, marketing managers. accountants

  • Lawyers, Insurance executives and managers, Investment bankers, commercial bankers,

  • Commercial managers, contract managers

  • Production Directors, Engineers, Geologist, Field Supervisors, Project Managers, Safety Directors/Managers

  • Economists, transaction advisors

  • Anybody that is involved in managing service contracts and Legal risk  in the oil and gas industry

 

Course Duration: 3 Days

 

Course Fee: $3,000                                                                       

REGISTER BY  JANUARY 15, 2014 AND GET  10% DISCOUNT!

School of Energy & Corporate Leadership (SECOL) is a global organization  that uses award winning experts in  providing training in the areas of energy, oil, gas, petrochemicals, regulations, law, leadership, organizational development , management, finance and economics. We believe strongly in the philosophy that humans are the greatest assets of any country or organization, and therefore should be nurtured with continuous quality training to enhance productivity, efficiency, effectiveness, reliability and competitiveness. SECOL will continue to create dynamic environment for capacity building, ensuring high performance, strategic agility, and leadership that would help organizations attain their goals and enable nations optimize socio- economic growth.