Action Learning Module Information       Close
Contracts

Competency Statement:

Analyze scenarios, make suitable contract models and study special projects in areas of the exploitation macro process, assuring business profitability and respecting the prevailing laws and norms of contracts.

Learning Objective:

Upon completion of this module, the participant should be able to
  • analyze field projects and generate contract models
  • evaluate contracts in terms of project profitability

Assignment Instruction:

As a reservoir manager, you are certain to spend much of your time dealing with companies that provide products, materials or services ranging from downhole tools to simulation software to engineering expertise. You may also work with research institutions, government agencies, other operating companies, and even with private individuals. All of these working relationships are governed by legal agreements, or contracts.

A contract defines the rights that each party has in a business relationship, the obligations that each party has toward the other, and the legal, fiscal and operating terms under which these rights and obligations are maintained. When properly drafted and negotiated in good faith, a contract works to the mutual benefit and protection of both parties. It is important, therefore, that you understand and be able to apply key contract provisions.

In this Learning Module, you will focus on two types of contracts: a term sheet for a Turnkey Drilling Contract with Daywork Provisions, patterned after the International Association of Drilling Contractorsí model (IADC--1998), and a Master Agreement for Contract Services, patterned after models developed by the IADC and the International Association of Geophysical Contractors (IAGC).