Case Analysis : Oil And Gas Industry

1604 Words Jan 5th, 2016 7 Pages
A claim is commonly regarded as a four-letter word which draws the line in the sand between the contactor and the employer. It is a better strategy to manage claims instead of behaving them in an emotional and inappropriate way which make them to legal actions. Claims are normal issues in oil and gas projects and are considered as rights of parties. We are not allowed to insert a term or provision which deprives parties of this right, entirely. Claim is a right which must be demanded by a party and has to have legal and contractual evidence. Otherwise, it would be a false and unrealistic claim. So, the claim is a written statement by one of the parties relies on the right of he/she demands other party or it is possible that one of the parties seeks to amend contractual circumstances or interpretation or explanation for the contract, which is a claim too. Reviewing of claims in oil and gas industry: Because claims and disputes in oil and gas industry are in three categories (upstream, downstream, midstream), we have to review the substance of the claim separately in these groups. Upstream claims: Claims in upstream area might be occurred in different periods and phases. The hardest ones are in the P and D phase. Claims in A and E phase are inexpensive and easy because in these phase risks are usually taken by the foreign investor and they are risk taking phases and until the Commercialization of the field, the investor cannot have any claim because he/she accepts to take…

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