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You are an adviser to a West African nation where substantial quantities of oil have been discovered in a remote, environmentally sensitive onshore area. Once production commences this will be the first ever oil production in the country. Several oil companies, turnkey contractors and major equipment vendors have expressed individual interest in developing the find. The Government is uncertain how best to control these interests and is looking to you for advice.
If the Government decides to appoint an Oil Major as the Project Manager for an EPIC contract then what are your recommendations for :-
a) The key features of contractual arrangements – between the oil company (as the customer), the primary contractors, sub-contractors and vendors.
b)The performance measurements and controls that the Government should require to be in place in the licence terms with the oil company to meet the Government’s development objectives of rapid development, local content and environmental protection (15%)
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