Executives and project managers for operators, service companies, contractors, and vendors on oil and gas projects are very concerned these days with the profitability and risks on their contracts. Whether it is for subsea activities, offshore platforms, floating production vessels, or other O&G facilities, risk concerns are getting more attention as pricing becomes more competitive.
The increased concerns may be due to fewer projects being put out for tender in certain geographic areas such as the Gulf of Mexico. Even in parts of the world where O&G development is expanding (like offshore Brazil), the players are becoming more risk–aware. For example, many US–based contractors are uncertain about the unfamiliar contracts used in Brazil, costs of local labor forces and risks involved in using mandated local vendors.
Risks are greater for civil engineering projects in West Africa, where concerns include local political considerations and the uncertain aspects of labor, material handling, and other field logistics. Many of these risks on O&G projects are dealt with by provisions in the contracts between the parties.
The increased concerns may be due to fewer projects being put out for tender in certain geographic areas such as the Gulf of Mexico. Even in parts of the world where O&G development is expanding (like offshore Brazil), the players are becoming more risk–aware. For example, many US–based contractors are uncertain about the unfamiliar contracts used in Brazil, costs of local labor forces and risks involved in using mandated local vendors.
Risks are greater for civil engineering projects in West Africa, where concerns include local political considerations and the uncertain aspects of labor, material handling, and other field logistics. Many of these risks on O&G projects are dealt with by provisions in the contracts between the parties.
