Cynthia linb ainstitute of transportation studies, university of california at davis, one shields avenue, 1605 tilia street, suite 100, davis, ca 95616, united states. Logic general conditions for services on and offshore edition 2. Use of logic contracts is now especially prevalent in the offshore sector, particularly in connection with field development work, including subsea construction and the installation of offshore. Contract logix, llc is a longtime innovator, developer, and provider of contract lifecycle management clm software. The book, written by a team of experts from keating chambers headed up by adam constable qc, provides detailed guidance on the construction of ships, rigs and other offshore vessels and structure. Click an logic standard contracts from the category drop. A tricky course the delicate business of using fidic contracts in. Well, as it may be with buses, it is also with standard form offshore decommissioning contracts. These documents formerly known as the crine contracts were published by the institute of petroleum on behalf of logic leading oil and gas industry competitiveness. A critical overview on the crinelogic contracts within.
Logic promotes decommissioning standard contract offshore. There are also many standard or model forms for different types of contract for the various services, works and forms of collaboration that such projects involve, from. Imcas marine construction contract revised and reissued. Logic standard contract construction edition 2 uk liabilities and. You can now purchase logic standard contracts from the ukooa publications library. Logic and bimco decommissioning contracts a practical comparison there is a saying in the uk, that one waits for an age for a bus to turn up and then several arrive at the same time. Oil and gas industry standard contracts developed originally under the. Under the classic split, the epc contract is divided into two separate contracts, commonly referred to as the.
In common with other logic contracts, the new contract conditions will form section ii of the contract, with full details of the project including the scope of work to be contained in the other sections. Operator workshop proceedings, decommissioning contract risk allocation, jogu2014tn002, dundas consultants 7 contractor survey output, decommissioning contract risk allocation, j. Applicability the contract will be capable of being used for the dismantling, removal and transport to shore of any offshore. They are a common risk allocation mechanism in the offshore oil and gas industry. Imcas marine construction contract revised and reissued posted on 8 july 2012. A well balanced, efficient and flexible contract will theoretically provide greater contract stability. A critical overview on the crinelogic contracts within the uk oil and gas industry. A large number of those contracts will be characterised as. Oguk publications include i ndustryleading reports and market intelligence, the industry magazine wireline and award winning best practice guidelines. Legal guideline for offshore project contracts kpmg law. For this reason, it is most common to see onshore offshore contracts being used under an epc contracting model. Logic oil and gas industry standard contracts developed originally under the crine initiative there are a number of forms including the general construction edition and marine construction edition last updated in 2003 and 2004 respectively the logic forms are very common in the offshore sector. The savings result in a reduced project capital cost, which in turn may be passed onto the project company and its lenders.
Germanys offshore wind industry and its related legal framework. Standardisation of contracts is an objective initially introduced in the 1990s by the crine cost reduction in new era initiative with the objective of reducing costs by 30% and helping to simplify the industrys procedures. Standard contracts for the uk offshore oil and gas industry. The first edition of keating on offshore construction and marine engineering contracts was launched in september 2015.
Clause 5 the duration of the contract is as specified in sap purchase. In common with other logic contracts, the new contract conditions will form section. However, in the offshore sector, many contracts are negotiated on knockforknock terms. The pro formas were conceived as part of an oil and gas industry initiative to save costs at a time when oil prices were much lower than today. The general conditions of contract for offshore decommissioning covers complete decommissioning of infrastructure, from cessation of production to delivery of structures to shore. Logic is a notforprofit wholly owned subsidiary of oguk that operates as the custodian for crossindustry projects that aim to increase the efficiency of working practice in the united kingdom continental shelf known as the ukcs. Types of drilling contracts continued footage contracts a footage contract provides that the drilling contractor be paid a stipulated price per foot of hole drilled from the surface to a total depth or some other specified depth. Logic contract services ltd are a privately owned contractor that primarily specialises in mechanical and electrical services. At logic, we are focused on delivering all our works safely through careful planning and assessment whilst managing works on time and budget. Contract management software datadriven contract logix. The general conditions of contract for offshore decommissioning have been prepared to serve the following scopes of work. An onshore offshore contract is therefore most appropriate for projects where there is a significant proportion of the contractors scope that does not need to be carried out at site, such as design and procurement. The general conditions of contract for construction.
A pdf version crine report will be emailed to the payer email address. The enforceability of indemnity clauses for oil pollution. Logic stands for leading oil and gas industry competitiveness and logic contracts have been around since 1999 as model form contracts for the uk offshore oil and gas industry. The present paper purports to analyse the main aspects relative to mutual and hold harmless indemnities, as they are used in upstream service contracts, in the united kingdom continental shelf.
However, the majority of the issues raised are applicable to epc contracts used in all. Fidic provides separate contracts for employerdesign or contractordesign. Even when those standard forms are adopted, bespoke amendments are often made during the negotiation process. Standard form contracts provided by industry bodies such as logic are. In addition to the general conditions of contract for offshore decommissioning, logic s other standard contracts comprise. All are designed to aid clients and contractors alongside their inhouse standard contracts and other industry publications. Risk allocation in oil and gas contracts slideshare. Legal aspects of oil and gas contracts law teacher. Contractual regimes for offshore decommissioning lexology. The oil and gas industry however, presents a unique set of potential liabilities, which makes the allocation of risk of even greater im. Offshore contracts liability and indemnity regimes candidate number. Standard form contracts provided by industry bodies such as logic are frequently used by parties operating in the offshore oil and gas industry. Total contract epc ntk purchasing nib marine operations nsc. Logic currently supports a suite of 11 standard contracts that are available for use throughout the oil and gas.
Subcontract for sme services edition 1 pdf only, subcontract for sme. Contracts, the authors believe epc contracts will continue to be a preeminent form of construction contract used on largescale oil and gas projects in most jurisdictions. An offshore project for the exploration, development and production of hydrocarbons will comprise many contracts, many of which will have significant value. This approach is reflected in the logic suite of model contracts and.
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