Lawyers for Oil & Gas Companies
We work with oil and gas companies across the Kingdom on contracts, compliance and disputes, with a practical grasp of how the sector actually operates.
Overview
Oil and gas operators and their service contractors work inside long-term, high-value contracts where risk allocation, not the service price, determines profitability. An open-ended liability clause or a loose force majeure definition is paid for at every operational incident across the life of the contract.
We work with service contractors, suppliers and operators on service and supply contracts, the risk allocation matrix with insurance and liability caps, local content requirements, operating permits and environmental compliance, and disputes over shutdown and delay.
What we see repeatedly is negotiation focused on price and margin while liability and indemnity provisions are left untouched. In this sector particularly, a single incident can cost more than the entire contract earns if the risk allocation is unbalanced.
The legal framework
The oil and gas sector operates within a specialised regulatory and contractual framework:
- The Ministry of Energy and licensing regimes for oil and gas activities
- The Gas Law and hydrocarbon pricing rules
- The local content authority and ratio requirements in contracts
- The Environment Law, its regulations and operating permits
- The Labour Law and safety requirements at operating sites
- The Arbitration Law in long-term contract disputes
Situations we handle
A field services contract
Liability allocation, insurance and damages caps are the substance of the contract, not the scope of services alone.
An equipment supply contract
Warranties, delivery and liability for defects in a harsh operating environment need specific drafting.
Local content requirements
Ratios are measured and audited and affect evaluation and payment certificates; they are assessed before bidding.
An operational incident
Liability and insurance clauses determine who bears the cost. They are reviewed before the incident, not after.
A shutdown or force majeure dispute
How force majeure is defined and what it does to payment is the most disputed clause in this sector.
Costly mistakes we see
- 1
Accepting unlimited liability
A clause with no cap means a single incident can exceed everything the contract earns.
- 2
Negotiating price without risk
Price is one clause. Liability, indemnity and insurance are what determine real profitability.
- 3
Neglecting local content
The ratios are now contractual conditions that are measured and enforced, with effects on evaluation and payment certificates.
- 4
Ignoring the permit sequence
Starting work before environmental and operating permits are complete halts the project at its most expensive stage.
How the procedure runs, step by step
Energy companies run long-term contracts under shifting regulation. The risk here is not in daily operations but in a contract that cannot absorb a change of law.
- 1
Review licences against actual activity
We review the current sector licences against actual operations and planned expansion. Activity beyond the licence scope risks suspension of operations, not merely a fine.
- 2
Review supply and service contracts
We examine pricing mechanisms, change-of-law provisions, liability caps, and compensation for suspension. A ten-year contract with no adjustment mechanism is a deferred loss at the first cost or regulatory shift.
- 3
Local content plan and its evidence
We review the required local content percentages and how they are measured and documented. Failure here is a penalty event in sector contracts, and it is measured by document, not by effort.
- 4
Environmental and safety compliance
We review operating permits, environmental oversight requirements, and incident procedures. Environmental liability extends to responsible individuals and is not confined to the entity.
- 5
Build the dispute record during operations
We put a system in place to preserve technical and operating records and correspondence. Disputes in this sector are decided on the technical record, and rebuilding it two years later is practically impossible.
Documents we will ask you for
- Current sector licences
- Long-term contracts and their schedules
- The local content plan and measurement reports
- Environmental permits and reports
- Operating and maintenance records
- Correspondence with the regulators
Fees and timelines
Contract review is offered at a fixed fee per contract according to size. Companies with recurring contracting are served under an annual arrangement covering contract review and advice within an agreed scope.
On timing: reviewing a services contract takes one to two weeks. Negotiating major contracts runs two to six months. Licensing and permit files follow the regulators' own pace.
Common questions
What matters most in negotiating service contracts?
Liability provisions, damages caps and insurance. In this sector a single incident can cost more than the entire contract earns if risk allocation is unbalanced, which matters far more than the price margin.
What are the local content requirements?
Defined percentages of local spend, employment and sourcing depending on the contract and the contracting entity. They are measured and audited, and non-compliance directly affects evaluation and payment certificates.
How should force majeure be drafted?
With a clear list of events, their effect on obligations and payment, notice periods, and a termination right if the event persists. Generic wording is the most disputed provision in this sector.
What are our environmental obligations?
Operating permits, emissions standards and periodic reporting depending on the activity. A breach can halt operations rather than merely attracting a fine, so compliance is built as a documented internal procedure.
Is arbitration suitable for our disputes?
Usually yes in high-value technical contracts, because the tribunal can include specialist expertise and confidentiality is preserved. But the clause must be drafted precisely at contracting, not at the point of dispute.
Do you review subcontracts?
Yes. Where they do not mirror the main contract on liability, insurance and periods, the entire gap falls on you as main contractor for nothing.
What is our liability for site safety?
Safety obligations sit with the operator and the contractor according to the contract and the regulations, and their contractual allocation must be express rather than assumed — because an assumption is construed against you when an incident occurs.
Do you help with licensing files?
Yes, preparing and following up licensing and permit files with the relevant authorities, sequencing the tracks in parallel to compress the project timeline.
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