Onshore and Offshore Drilling Contracts: Structuring Allocation of Risk and Other Key Provisions

This program has been cancelled

A live 90-minute CLE webinar with interactive Q&A


Wednesday, June 6, 2018

1:00pm-2:30pm EDT, 10:00am-11:30am PDT


This CLE webinar will guide energy counsel on the primary considerations and provisions in onshore and offshore drilling contracts, including allocation of risk, assignment, breach and termination. The panel will provide insight on structuring drilling contracts, issues that often arise, and court treatment of these contracts.

Description

Drilling contracts are at the core of upstream operations. As oil prices remain relatively low, cost and terms, on both existing drilling contacts and new drilling contracts, become even more important. Understanding which terms are essential for a particular contract is critical in the negotiation process.

The parties will need to carefully consider the risk allocation structure to be used. For example, do the indemnity and insurance provisions in the drilling contract fit well with the provisions of underlying MSAs? How should the indemnity provisions be structured? Is there a pass through provision? If not, what happens without one? What are the major insurance issues and pitfalls? Are there potential anti-indemnity statutes or other restrictions on indemnity or insurance that need to be understood and addressed? How allocation of risk is structured is essential to the agreement.

It is important for counsel to note that many different situations may arise under drilling contracts; which provisions will be most important will depend on the situation that develops. Although many provisions may seem the same as in other service contacts, counsel should carefully consider breach and termination provisions due to potential situations distinct to drilling.

Listen as our authoritative panel discusses critical considerations and key provisions in both onshore and offshore drilling contracts, including mobilization, demobilization, allocation of risk, assignment, breach and termination, and assignment or rig sharing. The panel will discuss negotiating and structuring drilling contracts, issues that commonly arise, and court rulings on these contracts.

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Outline

  1. Drilling contracts
    1. Key considerations—onshore vs. offshore
    2. Key provisions—onshore vs. offshore
      1. Mobilization and acceptance of rig
      2. Standard of performance
      3. Day-rate issues
      4. Allocation of risk — indemnity and insurance
      5. Breach and termination
      6. Assignment or rig sharing
  2. Issues that commonly arise
  3. Court treatment and anti-indemnity issues

Benefits

The panel will review these and other crucial issues:

  • What are the critical provisions when structuring and negotiating drilling contracts?
  • What issues frequently arise when structuring drilling contracts and what strategies should be used to allocate risk?
  • What are counsel’s options to efficiently negotiate these agreements?

Faculty

Almy, John
John Almy

Shareholder
Liskow & Lewis

Mr. Almy is a business lawyer who focuses on the creation, drafting and negotiation of oilfield operational contracts...  |  Read More

Pugh, William
William W. (Bill) Pugh

Shareholder
Liskow & Lewis

Mr. Pugh handles complex maritime and energy-related matters for oil and gas producers and other Texas, Louisiana and...  |  Read More