Nature of Oil and Gas Contracts

Nature of Petroleum Contracts is that it is more complex, complicated, sophisticated, and uncertain contracts comparing to any other conventional contract. The petroleum contracts usually refer to those of upstream and downstream contracts. Examples of the former are Loyalty/Tax System, PSC/PSA, JOA/JV, RSC, and of the latter are EC, PC, EPC, EPFC, BOT, Alliances, PPP.

Thus, since the nature and characteristics of oil & gas projects is based on the project life cycle, capital intensification, uncertainties and immobility of the infrastructures, therefore it is necessary to have sufficient and efficient knowledge and experiences in dealing with and managing such contracts.