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OIL & GAS COSTRUCTION CONTRACTS MANAGEMENT AND ADMINISTRATION FOR OIL & GAS ENGINEERS AND CONSTRUCTION CONTRACTS MANAGEMENT PROFESSIONALS AND LAWYERS
Language: ENGLISH
Instructors: BHADANIS QS INSTITUTE SINCE 2016
4 BHADANIS Institute Coins as Cashback
Why this course?
Oil & Gas Construction Contracts Management and Administration is a specialized course designed to equip professionals with the knowledge, practical skills, and strategic insights needed to manage, draft, negotiate, and administer contracts in the oil and gas sector. The course covers the full contract lifecycle—from project planning and tendering to closeout and post-contract audits—while addressing legal, regulatory, financial, and risk management dimensions unique to the GCC and global oil and gas markets.
Complexity of Projects: Oil and gas projects involve massive investments, multiple stakeholders, and high risks. Effective contract management is essential to ensure project delivery, cost control, and risk mitigation.
Regulatory Environment: The sector is subject to stringent local and international laws, environmental standards, and local content mandates. Understanding these is crucial to avoid costly non-compliance.
Dispute Prevention & Resolution: Well-structured contracts and robust administration help prevent disputes and facilitate efficient resolution when conflicts arise.
Career Advancement: Mastery of contract management is a key differentiator for engineers and professionals aspiring to leadership roles in project management, procurement, or legal departments.
Let’s walk through the course modules, highlighting what you’ll learn, how it applies in real projects, and practical tools you’ll use.
The oil and gas industry spans upstream (exploration/production), midstream (transportation), and downstream (refining/marketing). In the GCC, national oil companies (NOCs) like Saudi Aramco, ADNOC, and QatarEnergy dominate, often partnering with global majors.
Stakeholder | Role |
---|---|
NOCs | Project owners, regulators |
EPC Contractors | Engineering, procurement, construction |
Service Providers | Drilling, logistics, HSE |
Regulators | Enforce laws and standards |
Local SMEs | Supply chain, workforce |
Contracts define relationships, allocate risk, and provide a legal framework for project execution. In oil and gas, clear contracts are vital due to project scale, complexity, and exposure to risk.
Type | Use Case |
---|---|
EPC | Turnkey construction projects |
Service | Drilling, maintenance, logistics |
Supply | Equipment, materials procurement |
JV/Operating | Multi-party field development |
GCC countries have unique petroleum laws—often requiring a majority national share in resources and strict local content rules.
Projects must comply with standards like ISO, API, and local HSE regulations.
Country | Program | Requirement |
---|---|---|
Saudi Arabia | IKTVA | 70% local procurement |
UAE | ICV | 40% Emirati workforce |
Qatar | Tawteen | 30% Qatari SME suppliers |
Zero flaring, carbon capture, and HSE audits are now standard in GCC contracts.
Define rights and obligations for resource development.
Used in multi-party fields to allocate cost, risk, and decision-making.
EPC contracts are common for major infrastructure.
Cover pipelines, shipping, and LNG sales.
Define project boundaries, deliverables, and interfaces.
Assess technical, financial, and regulatory viability.
Cost models must factor in local content, supply chain, and risk contingencies.
Clear specs prevent scope creep and disputes later.
Detailed RFPs attract qualified bidders and clarify expectations.
Criterion | Weight |
---|---|
Technical Compliance | 40% |
Price | 30% |
Local Content | 20% |
HSE Record | 10% |
Shortlisting is based on compliance, experience, and price.
Ensures bidders have the capacity and track record.
Scope of Work
Payment Terms
Performance Guarantees
Change Management
Clear definitions and measurable deliverables are essential.
Balance between owner and contractor; e.g., knock-for-knock for offshore works.
Use plain language, define terms, and align with local law.
Prepare BATNA, understand counterpart’s priorities, and use structured agendas.
Align interests of NOCs, contractors, and regulators.
Trade-offs (e.g., local content for schedule flexibility).
Specify arbitration venues (DIFC-LCIA, SCCA, QICCA), mediation steps, and escalation paths.
Board approvals and regulatory sign-off are standard.
Deploy resources, secure permits, and set up site infrastructure.
Align all parties on deliverables, timelines, and communication.
Set reporting lines, escalation paths, and digital document systems.
Monitor progress, manage payments, and enforce compliance.
Centralized digital platforms (e.g., ADNOC’s ICV Portal) for records.
Track variations, approvals, and cost/time impacts.
Maintain logs for payments, changes, and compliance for future audits.
KPI | Target | Actual | Variance |
---|---|---|---|
Local Workforce (%) | 50% | 48% | -2% |
Flaring Compliance | 100% | 98% | -2% |
Regular audits, site visits, and digital dashboards.
Quarterly reviews with NOCs and regulators.
Root cause analysis and structured action plans.
Lump-sum, milestone, and hybrid models.
Structured logs and timely documentation.
AI-driven dashboards for real-time tracking.
Hedging, insurance, and contingency reserves.
Risk Type | Example | Mitigation |
---|---|---|
Technical | Equipment failure | Predictive maintenance |
Legal | Regulatory changes | Flexible contract clauses |
Financial | Price volatility | Hedging, fixed-price contracts |
Use risk matrices and allocate responsibilities.
Performance bonds, CAR, and third-party liability.
Clear definitions and notification protocols.
Payment delays
Scope changes
Local content shortfalls
Detailed logs, supporting documents, and quantification.
Mediation, arbitration, and litigation—each with pros and cons.
Learning from real-world GCC projects.
Joint inspections, punch lists, and training.
Linked to defect liability periods and compliance.
Workshops and feedback loops for continuous improvement.
Archiving for future reference and compliance.
Saudi Aramco’s Jafurah Gas, ADNOC’s zero-flaring, QatarEnergy’s LNG expansion.
Digital twins, blockchain for supply chains, and AI-driven compliance.
Centralized CLM platforms, IoT for real-time monitoring.
Hydrogen, CCUS, ESG reporting, and evolving local content mandates.
Let’s imagine a major EPC contract for a sour gas field in the UAE:
Phase | Key Actions | Tools/Frameworks |
---|---|---|
Planning | Feasibility, scope, RFP, prequalification | RFP templates, bid evaluation sheets |
Contracting | Drafting, negotiation, risk allocation, award | Digital contract platform |
Mobilization | Kick-off, resource deployment, HSE setup | Mobilization checklists |
Execution | Progress monitoring, change management, compliance audits | AI dashboards, compliance trackers |
Closeout | Final inspections, lessons learned, release of guarantees | Closeout checklists, audit logs |
For Engineers:
Understand how contract terms impact project execution, HSE, and compliance. Gain skills to manage claims, variations, and disputes—crucial for project success and career growth.
For Contracts Professionals:
Master the full contract lifecycle, from drafting to closeout. Learn to align contracts with national visions, manage risk, and leverage technology for efficiency and compliance.
In summary:
This course bridges engineering, legal, and commercial expertise, preparing professionals to lead successful oil and gas projects in the GCC and beyond. Through real-world examples, practical tools, and a focus on emerging trends, it empowers you to deliver projects on time, on budget, and in full compliance with evolving industry standards.
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