We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Overview of Contractual Risk Management - Essay Example

Comments (0) Cite this document
OIL AND GAS CONTRACT LAW Overview of Contractual Risk Management The Oil and Gas industry is certainly an industry that can be described as the heartbeat of industrialization of the world. This description best fits the industry given that it is the oil and gas industry that serves as the powering agent for most of the production based industries of the world…
Download full paperFile format: .doc, available for editing
Polish This Essay93.2% of users find it useful
Overview of Contractual Risk Management
Read TextPreview

Extract of sample
"Overview of Contractual Risk Management"

Download file to see previous pages These factors are even prevailing when it comes to upstream oil and gas operations. A typical example of such factors has to do with contractual risk management. Generally, contractual risk management has to do with an integrated process and responsibility of reviewing, analyzing and evaluating contractual risks of pending agreements so that once the agreements are executed, there would not have any repelling risk effects for the parties involved (Taverne, 2008, p. 32). Upstream oil and gas operations is one that is commonly plagued with series of disaster based occurrences that put upstream companies in so much risk of facing liabilities. It is in this direction that both operators and contractors, mainly the government has involved each other the signing of contracts that seek to protect the interest of all people involved. Even though on from a broader perspective, it would be seen as a great idea that there are contractual risks, the absence of an effective and efficient management system would result in a situation whereby the contract favors one side to the detriment of the other and it is for this reason that contractual risk management is always important. ...
ncentrate so much on contractual liabilities whereby there is an adjustment in the liabilities that defaulting companies pay (Gordon and Paterson, 2011, p. 232). The cause of the changes has also panned around two major factors. In the first instance, economic disposition has been identified as a strong factor that influences the contract landscape. Often times, when the market is weak in terms of falling global prices of oil, suppliers most cases become highly desperate towards their work and strive to overcome their negotiating position as they often have weaker negotiating positions at such times when the market is weak. Subsequently, oil and gas companies would be highly defensive on the liabilities involved in the contracts they enter into. Such weak markets is characterized by low revenues and profits for the oil and gas companies and so the best ways they try to stay within their means of operation is to avoid further risks including contractual risks. Apart from the strength of the market, events of increasing oil spills and other forms of upstream oil and gas accidents and disasters also affect the contract landscape. A typical example of this can be cited with the Macondo incident in the Gulf of Mexico, which resulted in several concerns from stakeholders of the type of risks that upstream oil and gas companies should be dealing. Certainly, during such times, contractors become defensive by increasing liabilities associated with prevailing risks. Role of Operators and Contractors Ideally, in the effect of contract risk, there are two major sides of stakeholders identified. These sides are operators and contractors. As expected, the operators are the upstream oil and gas companies who take up the responsibility and task of drilling and transporting oil and gas ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Overview of Contractual Risk Management Essay Example | Topics and Well Written Essays - 3000 words”, n.d.)
Overview of Contractual Risk Management Essay Example | Topics and Well Written Essays - 3000 words. Retrieved from https://studentshare.org/business/1402854-oil-and-gas-contract-law
(Overview of Contractual Risk Management Essay Example | Topics and Well Written Essays - 3000 Words)
Overview of Contractual Risk Management Essay Example | Topics and Well Written Essays - 3000 Words. https://studentshare.org/business/1402854-oil-and-gas-contract-law.
“Overview of Contractual Risk Management Essay Example | Topics and Well Written Essays - 3000 Words”, n.d. https://studentshare.org/business/1402854-oil-and-gas-contract-law.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Fire Control Project Overview
This was another example of a Government IT project in which it was absorbing increasing resources but never achieving the objectives initially set. The essential checks and balances done at the early stages of the project were ineffective.
11 Pages(2750 words)Essay
Contractual Agreements Vs Joint Ventures
In this paper an analysis of the patterns of R&D partnerships in the inter-firms right from early 1960’s is done. From around 1960’s, their importance was emphasized towards building a balanced organization by the international high, medium and low tech companies that they have taken the initiative to forego a part of their profits to set up those facilities.
14 Pages(3500 words)Assignment
Management Overview
21) call a processual approach. Figure 1: Prescriptive Strategy Figure 2: Emergent Strategy (Lynch, 2006) The new approach still takes external factors into account, but more and more organizations to focus on resources they have internally, which corresponds to resource based theory of firms (Barney, 1991), an idea further developed by others including Johnston et al (2008) Lynch (2006) and Grant (2005), which has helped resource based firm theory in line with needs of modern firms.
16 Pages(4000 words)Essay
Risk Management
With an ambition to be the leader in world air travel business, emirates Airline has over the years put in place measures and strategies that ensure that its cherished customers are give the very best of service. Part of these services is the practice of ensuring safety and security.
6 Pages(1500 words)Essay
Risk Management
Infrastructural construction industry has underwent significant changes over the last few years with much focus being directed towards limitation of risks and challenges encountered during the process. Risk assessment utilizes various tool combinations which helps in identification of those risks considered detrimental to successful implementation of the project.
10 Pages(2500 words)Essay
Risk Management Overview
Business risk is the probability that a business or organization will have less profit than expected and thus leading to limited ability to carry out its normal day to day operations (Devine, 2006). The standard operations every company or business carries out include; paying rent, wages, salary, petty cash, paying taxes.
3 Pages(750 words)Essay
Management Models: An Overview
We experience the greatest complexity of human management techniques, from households, governments, trade unions through multi-faceted business empires. This has aroused a drive towards bigger, better and more complicated systems of human resource management.
5 Pages(1250 words)Essay
Risk Management Overview
Risk Management is thus a strategic measure that allows management identify the potential risks, assess, analyze and evaluate them and take
5 Pages(1250 words)Essay
Risk Management
It is the responsibility of the managers to mitigate the risk as much as possible and create shareholders’ value. Carrying out operational and financial activities in the best interests of the shareholders is the most significant part
15 Pages(3750 words)Essay
Performance and Risk Management: A case of Britvic plc
g the mission of “make life’s everyday moments more enjoyable” (Britvic, 2014a), the company has strong brand portfolio of soft drinks and successfully operating in three European countries including UK, France and Ireland. Also, company has the right of selling products
10 Pages(2500 words)Essay
Let us find you another Essay on topic Overview of Contractual Risk Management for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us