What Every Oil & Gas Company Must Know About Contract Management

For years, oil and gas companies primarily utilized production sharing contracts when partnering with governments or other firms to research and develop natural resources. Lately, however, there has been increasing use of service level agreements to govern these relationships. This type of agreement has various advantages, as well as one particular disadvantage that can be rather significant. Despite their limitations, they are continuing to become the agreement of choice among companies in the oil and gas sector. Here are two reasons these agreements are so popular now, as well as the major drawback to them, and some things that firms must consider before agreeing to this kind of arrangement.

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