First, the petroleum industry contracts should resemble the TEFCEL elements in the same line as with the requirements of the industry projects. Therefore, one should always realize that TEFCEL elements shall work with each other in a fractal way which are ‘the same from near as from far’, but such destination is not right at all.
Secondly, it is not important whether one would not be able to manage different projects at one time (which the fact does not support always this assertion) or one will be able to manage various contracts at the same time (which the fact may be established otherwise). The reality is how to establish a unitization, unification and harmonization between petroleum project and contract by way of dynamic coordination between them throughout the lifecycle of the project and contract, i.e. during the project definition, determination of contract strategies, effective negotiation and drafting of the smart contract, and then to come with the integrated and unified delivery of the expected products and/or objectives.
Third, though in the past, PM was more attended than CM, but nowadays without CM, the objectives of PM cannot be achieved. That’s why the 3rd millennium commenced with the revolutionary ideas of CM particularly in Upstream Oil and Gas projects
Forth, we will not be able to manage the Petroleum Contract unless we are well equipped with the knowledge and experience of TEFCEL matters. Further, we should also be able to manage the negotiation and drafting of oil and gas contracts while utilizing the best Contracts Game Theory.
Fifth, contract management should be understood in the same line and objective as to the project management. That is both of them should act as the blades of scissors to secure the delivery of the job. So in modern industry with the complicated TEFCEL issues in the contract and the project, it is unwise to distinguish between contract performance and project management, but both of them should be properly managed to assure the delivery of the four main pillars of the projects, i.e. Cost, Time, Quantity and Quality. Project’s products and objectives will only be safely delivered where the contracts terms and conditions are successfully implemented.
Sixth, TEFCEL model was introduced to the wider petroleum industry to establish a fact that contracts and projects should collaboratively, cooperatively and cohesively work with each other in order to bring comprehensiveness and integrity and to secure deliverability.
Seventh, management of the oil and gas contract via TEFCEL Model is how to learn on how to plan, prepare and manage difficult negotiation in Oil and Gas contracts while taking into account TEFCEL elements (i.e. Technical, Technological, Economic, Financial, Fiscal, Commercial, Contractual, Environment and Legal). This Model is to recognize the vital steps in a negotiation and the principles and procedures of negotiation, contract drafting and contract performance between HGs/NOCs/IOCs/OSCs.
- Encountering more and more with multidisciplinary issues and intersectionary aspects
- Necessity to tackle the grey area of practices in the O&G industry
- Necessity to understand, to plan and to manage potential risks in operating contracts and sub-contracts in O&G industry
- To manage uncertainties and complexities in today’s economic climate
- To learn how effectively to manage the contracts, thus, to add and secure values
- To take preventive measures against contractual allegations, claims and disputes ensure sustainability in the current climates
- To manage the dynamic changes experienced nowadays in the relationship between different players in the industry such as companies, clients, investors and contractors
- To properly manage varieties of cooperate formula such as JV, PPP, PA, JOA, Alliances, and Consortium
- To effectively negotiate, conclude and execute different models of contracts such as Royalty & Tax, PSA/PSC, RSC, EC, EP, EPC, BOT, GC, MC, PSC, TSA, PSAC, concession and service contracts
- To manage not only the project but also a duty of care and great considerations should also be granted to the concerned contract(s).
- Nowadays, the contract management become as prominently important as the project management.
- However, this unruly horse of contract cannot be administered or controlled on a partial basis or timely manner without having a proper vision and mission for its lifecycle and chain of activities.
- There is a need to consider strategic and tactical issues of O&G contracts
- There is a need to have long term A-Z comprehensive contract management plan