Performance-based contracts in E&P-II: Can PSUs achieve a breakthrough?
Public sector companies have been trying unsuccessfully for over two decades to implement performance-based contracts, particularly in their ageing fields 8The lack of success has been on account of not being able to figure out how to design such a contract, how to go through the partner selection process and then how to go through the contract execution phase. 8For reference purposes, the website carries here a detailed mapping of the different kinds of contacts that are available within the performance-based contract framework. The pros and cons of the following types of contracts are elaborated --Cost plus -- Fixed price -- Performance based 8An insight is also given on how to design such contracts and what that will entail for an oil & gas company. Click on Reports for more