Value Through Agreements: Contract Management and Procurement Strategy in Oil and Gas Training Course

Introduction

In the capital-intensive and highly complex oil and gas industry, where projects involve significant investments and long operational lifecycles, the effective management of contracts and a robust procurement strategy are absolutely critical for mitigating risks, controlling costs, ensuring operational continuity, and maximizing value. From multi-billion-dollar EPC contracts to intricate service agreements and complex supply chain arrangements, the ability to strategically procure goods and services and meticulously manage contractual relationships directly impacts project success, profitability, and regulatory compliance.

This intensive training course is meticulously designed to equip participants with a comprehensive and practical understanding of contract management and procurement strategy principles specifically tailored for the oil and gas sector. From exploring various procurement models and strategic sourcing techniques to mastering contract drafting, negotiation, administration, and dispute resolution, you will gain the expertise to optimize contractual relationships. This empowers you to secure favorable terms, enhance supplier performance, mitigate legal and commercial risks, and strategically contribute to the financial success and operational excellence of your organization.

Target Audience

  • Procurement and Purchasing Professionals.
  • Contract Managers and Administrators.
  • Commercial Managers and Analysts.
  • Project Managers and Project Engineers.
  • Supply Chain Managers.
  • Legal Counsel (seeking commercial insights).
  • Business Development Managers (involved in bidding).
  • Anyone involved in the acquisition of goods, services, or works in the oil and gas industry.

Duration: 10 days

Course Objectives

Upon completion of this training course, participants will be able to:

  • Understand the fundamental principles of procurement and contract management in oil and gas.
  • Grasp various procurement models and strategic sourcing methodologies.
  • Analyze different types of contracts and their key clauses.
  • Comprehend effective negotiation strategies for oil and gas agreements.
  • Evaluate different approaches to contract administration and performance management.
  • Develop practical skills in drafting, reviewing, and managing complex contracts.
  • Navigate the complexities of risk allocation and legal compliance in contracts.
  • Formulate robust strategies for optimizing procurement processes and ensuring contract value realization.

Course Content

  1. Introduction to Procurement and Supply Chain in Oil and Gas
  • Definition of procurement and its strategic importance in the oil and gas industry.
  • Overview of the oil and gas supply chain and its unique characteristics.
  • Role of procurement in cost control, risk mitigation, and value creation.
  • Evolution of procurement practices: from transactional to strategic.
  • Key challenges and opportunities in oil and gas procurement.
  1. Procurement Strategy and Sourcing Models
  • Aligning procurement strategy with corporate objectives.
  • Strategic sourcing methodologies: spend analysis, market intelligence, category management.
  • Make-or-buy decisions and outsourcing strategies.
  • Centralized vs. decentralized procurement models.
  • Ethical sourcing and responsible procurement.
  1. Tendering and Bidding Process
  • Developing specifications and scopes of work (SOW).
  • Pre-qualification of bidders and vendor management.
  • Types of tenders: open, selective, negotiated.
  • Request for Information (RFI), Request for Proposal (RFP), Request for Quotation (RFQ).
  • Bid evaluation criteria: technical, commercial, HSE, local content.
  1. Contract Types and Structures
  • Overview of common contract types: Lump Sum, Unit Rate, Cost-Plus, Time & Materials.
  • Engineering, Procurement, and Construction (EPC) contracts.
  • Engineering, Procurement, Construction Management (EPCM) contracts.
  • Service agreements, master service agreements (MSAs).
  • Joint venture agreements and production sharing contracts (contractual aspects).
  1. Key Contractual Clauses
  • Scope of work, deliverables, and specifications.
  • Payment terms and invoicing procedures.
  • Indemnities, liabilities, and insurance.
  • Force Majeure, suspension, and termination clauses.
  • Change management and variation orders.
  • Governing law and dispute resolution.
  1. Contract Negotiation Skills
  • Preparation for negotiation: objectives, BATNA, ZOPA.
  • Negotiation styles and tactics.
  • Concession strategies and closing techniques.
  • Cross-cultural negotiation considerations.
  • Building long-term relationships through negotiation.
  1. Contract Administration and Performance Management
  • Mobilization and kick-off meetings.
  • Progress monitoring and reporting.
  • Managing interfaces and coordination.
  • Invoice verification and payment processing.
  • Performance reviews and key performance indicators (KPIs) for contractors.
  1. Managing Claims, Variations, and Disputes
  • Identifying and documenting claims.
  • Analyzing variations and change orders.
  • Dispute avoidance strategies.
  • Formal dispute resolution mechanisms: negotiation, mediation, conciliation, arbitration, litigation.
  • Lessons learned from contract disputes.
  1. Supplier Relationship Management (SRM)
  • Importance of SRM for long-term value creation.
  • Segmenting suppliers and developing relationship strategies.
  • Joint value creation initiatives with strategic suppliers.
  • Supplier performance improvement programs.
  • Ethical conduct in supplier relationships.
  1. Digital Transformation and Future Trends
  • Digital procurement platforms and e-sourcing.
  • Contract Lifecycle Management (CLM) software.
  • Blockchain for supply chain transparency and smart contracts.
  • AI and predictive analytics in procurement.
  • Impact of local content regulations on procurement strategy.
  • Sustainable procurement and ESG considerations in contracting.

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport pick up and accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

For More Details call: +254-114-087-180

 

Value Through Agreements: Contract Management And Procurement Strategy In Oil And Gas Training Course in Dominica
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