training specialists to the upstream oil and gas industry

EPC, EPCM, & EPIC Contracts in the International Petroleum Industry

Book now button

Course overview

As a general rule, the more complex or specialized the work or project, the more likely it is that design, engineering, construction and procurement will be carried out by independent contractors. Even the largest multi-national and State petroleum companies rely upon EPC Contractors with the technical skills and management experience to design build and commission complex developments and projects. Today, there is a trend towards tendering large, full-cycle EPCIC projects, particularly for offshore production.

This 4-day training programme on the variations of Engineering Procurement Construction Management and Installation (EPC, EPCM and EPCIC) Contracts that are used in the international petroleum industry.

Learning objectives

After attending this programme, participants will be able to:

  • Understand the options for the types of agreements used for implementing large-scale petroleum projects.
  • Discuss and apply decision-making criteria in tendering for EPC, EPCM and EPIC contracts.
  • Understand the various considerations in adopting risk management strategies and the allocation and limitation of liability between Owners and Contractors.
  • Effectively participate in the resolution of disputes that arise during petroleum operations.

The course is designed for

  • Contract / Project Engineers
  • Commercial Contract Managers
  • Commercial Operation Teams
  • Procurement supply chain professionals
  • Risk Managers
  • Lawyers and Paralegals

Course outline


Performance Bonds & Guarantees

  • On-Demand Bonds
  • Parent Company Guarantee
  • Letters of Indemnity


  • Primary Cover – Contractor’s All-Risk
  • Special Endorsements
  • Political Risk

Customs & Immigration

  • Dutiable materials
  • Entry of Non-resident employees
  • Case Study: Adjustment of Delivery Point to Reduce Tax


Tax Considerations

  • Project Package – Service & Supply
  • Delivery & Title
  • Tax Domicile of Contractor
  • Tax Indemnity from Operator


  • Testing & Certification
  • Acceptance
  • Passing Tile & Risk
  • Warranties and Guarantees
  • Intellectual Property
  • Defects
  • Exculpatory Clauses


  • Reimbursable Payments
  • Subcontractors
  • Auditor & Audit Procedure
  • Exceptions & Claims

Dispute Resolution

  • Classification of Claims
  • Procedures
  • Communications Between Parties
  • Impact on Relationships

Case Study: Alternative Dispute Resolution

Review Model EPIC Agreements: Norwegian Fabrication Contract 2007 & LOGIC Construction & Well Services

  • Performance of Work
  • Variations
  • Cancellation & Suspension
  • Delivery & Payment
  • Force Majeure
  • Limitation & Exclusion of Liability
  • Proprietary Rights


Use of EPC Contracts in the Petroleum Industry

  • Contracting Options & Formats: EPC, EPCM, EPIC & EPCC
  • Project Stages
  • Contract Management: Scope, Schedule & Budget
  • Completion & Handing Over
  • On-going Operations & Maintenance

Relationship between Contractors, Operators, JV Participants & NOCs

  • Operator’s Work Program and Development Plan
  • Project Scope, Schedule & Budget
  • Joint Venture Participants
  • National Oil Company

Contractor Selection

  • Frontend Engineering & Design
  • Prequalification for Tender: Legal, Technical & Commercial
  • Tender Package
  • Evaluation
  • Exceptions
  • Local Content Requirements
  • Awards
  • Letter of Intent & Letter of Agreement
  • Contract Execution
  • Regulatory Oversight

Contract Milestones Issues Performance & Payment

  • Notice to Proceed
  • Mobilisation
  • Progress Reports
  • Completion & Acceptance
  • Invoices
  • Authorization for Variations & Extras
  • Termination or Extension

Case Study: Critical Path Schedule & Project Tracking for EPIC


Payment Arrangements

  • Lump Sum Turn Key
  • Unit Rates
  • Progress Payments
  • Milestones
  • Bonuses
  • Credit Memos
  • Retention
  • Multi-currency Payments

Contract Variations

  • Client Request
  • Contractor Recommendation
  • Upselling

Risk & Liability

  • Liquidated Damages
  • Defects
  • Downhole & Subsurface Conditions
  • Environmental
  • Warranties & Indemnities
  • Limitation on Contractor Liability

Force Majeure

  • Events: Definition & Exclusions
  • Obligations & Notification
  • Suspension & Contract Extension
  • Termination

Case Study: Contract Variation Based on Substitution of Consumables


Location Start Date End Date Cost Trainer Book
Upon request     £2,950 Denis Stickley Make enquiry

^ Top

Website: Studio Beam Ltd