Generating profits and growth in the value chain of the oil and gas industry is achieved through the exploration of reserves located in various parts of the world. Many of the recent finds have been made in developing countries. As a consequence, coupled with the growing competition for oil and gas reserves, developing countries are now in a position to better negotiate with large oil companies as all are now struggling to replenish their energy reserves.

At Petroleum Insight, we understand that major oil companies have in the past used their leading-edge technology, unrivalled expertise in managing complex projects and used their deep pockets to create tremendous bargaining power in their negotiations with governments. Recently, however, those skills have been less conspicuous due to improvements by producing countries in developing managerial capabilities. All of these factors and more have made it possible for National and International Oil Companies to have an outlook based on partnership. We, at Petroleum Insight, provide consistent, robust and rigorous advice on making this partnership work on all levels.

Petroleum contracts are the cornerstones of the oil and gas industry. It is only through well negotiated contracts that oil and gas resources will be developed and explored in a manner which is both economically viable and environmentally friendly. Furthermore, because contracts in this industry are quite fungible and transactions around the world similar, we at Petroleum Insight understand that contract differences generally indicate a difference in circumstances.

For that reason, we conduct extensive “essential issues” sessions for our oil and gas negotiation briefs. Our clients require our team of experts to deliver insights on ways to:

• Recognize and spread the risk
• Gain additional capital or expertise
• Define rights and obligations
• Define relationships

Our team of lawyers possess all the qualities indispensable to any successful petroleum negotiation, namely: good people skills, a sharp and quick mind, a sense of adventure and the willingness to deal with people from other cultures on their terms.

Risk has always been monnaie courante in the oil and gas industry and with the number of players growing rapidly, contracts remain the only effective and serious tool against market risk, credit risk, financial risk, legal risk or political risk to name a few.