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ON POORLY DRAFTED
Olga Labai
CONTRACTS Director
INTRODUCTION
www.ogc.works
EXPERIENCE - OPERATOR
Sakhalin-2 Project
Sakhalin Energy
Investment Company Ltd.
(Gazprom, Shell, Mitsui, Mitsubishi)
182,4 million tons of oil
633,6 billion cubic meters of gas
First specialised port in Russia
3 offshore platforms
Onshore Processing Facility
800 km pipelines oil and gas
30 thousand people involved
EXPERIENCE MAJOR
CONTRACTOR
The Production Facility treats the crude oil arriving from [NAME] well by using H2S
scavenger.
[FIELD NAME] crude oil is classified as a sour one in which the H2S concentration in the liquid
phase has been measured between 800-1300 part per million (ppm) .To meet the international
exporting specification, the Crude H2S concentration shall be reduced to 10 ppm. Therefore the
crude oil shall be scavenged with a suitable chemical scavenger. Sulphanox 800 is selected to be
supplied by [SUPPLIER].
Transportation: 1 m3 IBC is preferred otherwise 220 liter drum is also accepted.
Lead time of the first shipment: four (4) weeks after receiving the official Purchase order. Rest of
the shipment: within 24 hours after receiving the official Purchase order.
SMART DRAFTING
Scope of Work:
detailed;
measurable;
tangible deliverables;
good connection with the pricing schedule.
Delivery Schedule:
every phase is linked to specific deliverables;
overall timelines for delivery of SoW.
POOR DRAFTING
EXAMPLE
When is that?
POOR DRAFTING
Yes, I am responsible for everything you gave me, client, but what
exactly did you give me again..?
If the Work or any part thereof is defective in that it fails to conform to such
requirements, Contractor shall perform, at its expense, such remediation as may be
necessary to correct any such defects in the Work brought to Contractor's attention in
writing by Company within one (1) year from completion of the Work or from
completion of the discrete segment which includes the portion of the Work in question,
whichever is earlier. Contractor shall commence such remedial work promptly after
receipt of Company's notice and continue such remedial work in an efficient and timely
manner until it is completed.
SMART DRAFTING
LIQUIDATED
DAMAGES PENALTIES
SMART DRAFTING
The liquidated damages amount should be a genuine pre-estimate of the clients
anticipated loss;
A copy of the calculation sheet should be kept on file as a contemporary note of the
estimate;
Document any negotiations which led to the agreed amount;
Document the calculations in the contract or in correspondence;
Ensure that the amount does not amount to a penalty by reference to tests in Dunlop;
If sectional completion is required apportion liquidated damages between the
sections;
Make provision in the contract for a reduction of liquidated damages in the event of
partial possession;
Never insert nil as this will result in no entitlement to damages as a result of delay.
POOR DRAFTING
In Legal Terms:
Party A (e.g., an operator) indemnifies Party B (e.g., a drilling
contractor) against claims, losses, damages, etc. arising from:
Death of, or personal injury to, Party As employees;
Loss of, or damage to, Party As property; and/or
Pollution emanating from Party As property.
All notwithstanding that Party Bs negligence may have caused or
contributed to the death, personal injury, loss, damage, or
pollution in question.
INVITATION
TO TENDER
CONTRACTOR
TWO
DUE DILIGENCE
CONTRACTOR
ONE
PROVIDO
PRE-
SERVICE
QUALIFICATION
SERVICES
NEGOTIATIONS GOODS
WORKS
Q&A
contractor
(subcontractor 1)
TRAINING SOLUTIONS
EMPOWERING YOUR
BUSINESS