The oil and gas industry are global in nature, and it involves trading pipeline gas and LNG in Africa, Europe, the Middle East, Asia, and North America. These markets have grown exponentially as a result of demand and deregulation, bringing tremendous business opportunities for all the stakeholders, including government entities, producers, sellers, transporters, and buyers, etc. High contract value, complicated commercial terms, volatile prices, cultural differences, and many other unpredicted risks have made contract negotiating, dispute resolution, and risk management more and more challenging.
Effective training in these areas becomes an urgent need for relevant executives in both the public and private sectors. In response to such industry dynamics, including consideration to the dispute resolution options. This advanced masterclass on oil and gas, and LNG sales agreement will provide effective training in the critical considerations and conditions for successfully concluding and negotiating more profitably contracts relevant contracts. The Gas & LNG Markets, Pricing and Contracts training course will enable the participants to gain an insight into the way in which buyers and sellers view and negotiate gas and LNG sales agreements and will give the participants a detailed understanding of the terms that are important in these transactions.
This Energy Training Centre training course will highlight:
- Dynamic of downstream, midstream, and upstream activities
- Essentials of contract principles
- Gas sales and purchase agreements, and LNG contracts with reference to international model contracts
- Transportation agreements with reference to international model contracts
- Contractual risk management issues, insurance, indemnities, liabilities, and force majeure
- Negotiation arts and strategies relevant to LNG contracts
- Dispute resolution options relevant to LNG contracts
This Gas & LNG Markets, Pricing and Contracts training course aims to provide an overview of the oil and gas contracts and its application in practice, to understand how to negotiate profitably key oil and gas contracts, to assess, and manage and mitigate overall risks, and to understand the application of Alternative Dispute Resolution (ADR) relevant to oil and gas contracts.
At the end of this training course, the participants will learn to:
- Understanding common contractual pitfalls in key oil and gas contracts
- Negotiate oil and gas contracts profitably, with a clear understanding of insurance provisions, liability, and indemnity clauses
- Enhance the ability to draft and negotiate force majeure clauses
- Assess and manage risks as relevant to oil and gas contracts
- Grasp and apply dispute resolution methods to oil and gas contracts
This Gas & LNG Markets, Pricing and Contracts training course will provide the participants an perfect opportunity to advance and sharpen their skill sets in planning, negotiating and drafting oil and gas contracts through an interactive session with role-playing, case studies, group discussions, and scenarios building and the high-point of the training course being a simulation exercise of oil and gas contracts negotiation involving interactive role play by the participants.
The objective of the interactive role-play is to enable participants to apply the knowledge and understanding gained at the workshop to negotiate a more effective oil and gas contract. This will help the participants to gain practical insights into managing the risks and enhancing their rewards.
This training course offers a unique opportunity to rapidly increase your understanding of the oil and gas contracts and improve your negotiation techniques, and skills in drafting a variety of related contracts for professionals involved nationally and internationally in the oil and gas industry.
The organisation will benefit from this Gas & LNG Markets, Pricing and Contracts training course through:
- Gaining expertise and improving knowledge and skill sets of personnel dealing with areas of legal risks in handling oil and gas contracts
- Various workshops and exercises the ability to appreciate and understand the current international practices in oil and gas contracts
- How to mitigate risks in oil and gas contracts
- Enhancing the contract personnel negotiation skills
- Understanding the importance of Alternative Dispute Resolution (ADR) clause
The participants will gain knowledge by attending this training course, as a result:
- A unique opportunity to rapidly increase your understanding of the international practices relevant to oil and gas contracts
- Improving the negotiation techniques and skills in drafting a variety of related oil and gas contracts
- Managing and mitigating legal risks associated with oil and gas contracts
- Choosing the most appropriate form of dispute resolution and how to draft a suitable Alternative Dispute Resolution (ADR) clause
- Enhancing your ability to negotiate and manage claims and disputes with confidence
The Gas & LNG Markets, Pricing and Contracts training course is specifically designed for professionals actively involved or likely to be involved in contract negotiations and all those who need an understanding of the principles of gas contracts, including issues such as price terms and the allocation of risk.
This training course is suitable for a wide range of professionals but will greatly benefit:
- Senior and Middle-Level Commercial Managers
- Commercial Lawyers
- Risk Managers
- Energy Purchasing Managers
- Strategy Managers
- Pipeline Marketing Managers
- Operations Managers
- Project Managers
- Senior Government Officials and Regulators
Day One: Dynamic of the Petroleum Industry and English Contract Law
- Introduction to oil and gas contracts
- Key terms and definitions
- Downstream
- Midstream
- Upstream
- The main international industry players
Legal System and English Contract Law
- Mandatory elements of a legally enforceable contract
- Contract formation
- Contract terms
- Interpretation of contract terms
- Remedies for breach of contract
- Contract termination in English law
Day Two: The Essence of Oil, Gas, and LNG Sales Contracts
The Characteristics of LNG Sales Contracts
- The contractual process
- Commercial realities
- Drafts and drafting
- Enforcement
- Fundamental legal principles
- Cultural and language issues
- Fundamental legal principles
- LNG sales contracts
- Global gas market
- LNG and domestic gas value chains
- Structuring an LNG project
- Government role
- Capacity building
- LNG development environment, social impact and safety
- Pricing
- LNG and Gas Contracts
- Introduction
- PSC vs. Licenses
- Preliminary agreements
- Domestic gas sales agreement
- LNG sale and purchase agreement
- Miscellaneous agreements
Day Three: Contract Liability, Indemnity, Insurance: Transportation Agreements
Contract Risk Management
- Risk management and LNG business
- Types of risk in LNG
- Transportation agreement
- The contractual arrangements put in place for getting petroleum from the wellhead to the marketplace
- Off taking and transporting Oil & Gas (Pipeline or Ship)
- Typical terms of a gas pipeline Transportation and Processing Agreement (TPA)
- Transportation (or Transshipment) of crude oil and Liquefied Natural Gas (LNG) or Gas to Liquids (GTL)
- International practices and model contracts
The Essential of Negotiations in Oil and Gas Context
Liability Clauses
Contractual Indemnity
Insurance Provisions
Day Four: Gas Sale and Purchase Agreements
- Types of gas sales agreements
- Parties
- Term and effectiveness: Duration and delayed start date provisions
- Sale, purchase, and delivery
- Gas reserves
- How to express gas quantities in pipeline gas contracts?
- Take-or-pay, carry forward and make-up
- Current practice on shortfall penalties
- Quality
- Price
- Nominations, undertake and overtake
- Measurement and testing
- Invoicing and payment
- Force majeure in gas sales contracts: The differences between pipeline gas and LNG
- Understand the purpose and risks this clause is intended to mitigate
- Avoiding common force majeure pitfalls
- Protect yourself from abuse and misuse of this clause
- Mechanics of exercising force majeure rights
- Termination
- Tax
Day Five: Contract Claims and Dispute Resolutions
- Tiered dispute resolution mechanisms
- Formal dispute resolution
- Preventing costly litigation through effective use of ADR option
- Types of dispute resolution vehicles
- Assessing litigation vs. Arbitration options
- Mediation considerations
- Considerations for selecting effective mediators and
- Arbitrators
- Selecting arbitration and mediation rules of procedure
- Drafting effective dispute resolution clause
- Contract review, evaluation, and lesson learned
- Overview and conclusion
