IADC Contracts & Risk Management Conference

7:45 am   Red Oak Ballroom AB
Registration & Coffee Service

7:50 am   Magnolia Room
Speaker Briefing (Speakers, Moderators & Session Chairs only)

8:30 am   Magnolia Room
Welcome & Introduction

• Mike DuBose, Senior Vice President – International Development, IADC

IADC Contracts Committee Activities Update: Tyler Smith, Chair, IADC Contracts Committee; Legal Counsel, Nabors Industries

9:00 am
Keynote Presentation: Global Supply Chain Issues: Margaret Kidd, Professor, Cullen College of Engineering, University of Houston

9:30 am
AFE innovation for Cost Efficiency: Giovana De Sousa Gomes, Well Engineer, Mikhail Presniakov, Maria Andrea Torres, Juan Rodrigo Lujan, Carlos Terrones SLB
In the dynamic NA market, Integrated Services projects face the challenge of sustainability, performance, and cost efficiency, particularly in offshore and high-pressure environments. We will navigate the complexities of contract management within this context, emphasizing the critical need to optimize costs while simultaneously enhancing service quality and risk management. Achieving a projects goal requires a meticulous balance between operational efficiency and environmental responsibility. Cost efficiency management emerges as a pivotal concern, especially in challenging environments where every saving impacts on profitability. It will underscore the imperative of enhancing service quality alongside cost reduction efforts, ensuring that efficiency gains do not compromise operational excellence on a cloud-based system that was developed for cost tracking and saving opportunities, both with suppliers and client.

10:00 am Coffee Service

10:15 am
Rising Use of AI for Contracts
The panelists will discuss the pros & cons of using AI in the drafting of Contracts.

• Cassandra Gaedt-Sheckter, Partner, Gibson Dunn
• Frances Waldmann, Partner, Gibson Dunn
• Brad Weber, Partner, Locke Lord

11:15 am
Well Control

Automated Well Control Risk and Cost Reduction: Bryan Atchison, Managing Director, Safe Influx
A probabilistic risk and cost model was developed to quantify the benefits of Automated Well Control. All the risks and costs associated with well control were identified and then quantified using research. The model enables the quantification of the Total Cost of Risk for well control. It also enables specific region or company details to be added and fully quantified. The Total Cost of Well Control Risk for a Gulf of Mexico deep-water operation was calculated at $55,000 dollars per day, every day, irrespective if an event occurs. This value was confirmed by a super-major. The introduction of Automated Well Control would reduce the Total Cost of Risk by an estimated 50%. The main contributor for reduction in rig time and cost is by minimising the influx volume size for all well control events. A probabilistic risked cost approach is used to understand the risk and cost benefits of automating the well control shut in process.

Impact of Corporate Reorganisation on Well Risk Management: Ken Fraser, Founder, Novodrill Ltd
When anything goes wrong on a Rig, the first question we normally hear from Town is ‘Who was on the brake?’ For sure at times the Driller could be at fault but a Driller on their own cannot cause disasters. Major disasters require a Team Effort. This paper looks at Macondo and the 737 Max as examples of how inappropriate corporate reorganisation might actually be the root cause of subsequent safety issues.

12:15 pm Red Oak Ballroom AB
Luncheon

1:15 pm
Risk Allocation, Hold Harmless, Release of Liability & Indemnity Agreements

Essential English Law Update: David Leckie, Partner, Tom Roberts, Partner, Clyde & Co.
This presentation will explore the latest English law developments relevant to drilling activities, both in terms of case law and new legislation. In particular we will explore: Latest decisions of the courts in relation to risk allocation, liabilities and indemnities. Drafting tips.; The Economic Crime and Corporate Transparency Act 2023 and failing to prevent fraud; Drafting anti bribery and anti-fraud provisions; Climate change litigation in the English courts; Ethical considerations.

The Reliability of Limitations and Exclusions: Clare Kempkens, Partner, K & L Gates LLP
This paper looks at recent English law cases on limitation and exclusion clauses. It explains the English courts’ current approach to those clauses, whether parties can expect them to work if there has been deliberate or repudiatory behaviour and key drafting points to consider.

Course Clarification: Allegiance to the Vessel and Jones Act Seaman Status under Santee v. Oceaneering International: Michael Wray, Of Counsel, Squire Patton Boggs, Thomas Nork, Partner, Nork Mendez
Given social inflation and post-COVID “nuclear” jury verdicts, whether a worker qualifies as a Jones Act seaman significantly impacts an offshore company’s risk profile. In 2021, the en banc Fifth Circuit decision in Sanchez v. Smart Fabricators of Texas, L.L.C. significantly altered the test for seaman status. In the first significant decision since Sanchez, the Firth Circuit in Santee v. Oceaneering International focused on the “allegiance to the vessel” prong of the Sanchez test. The Santee decision is powerful tool in the defendant’s arsenal that can be used to challenge seaman status.

Rig Importation Responsibility in Drilling Contracts: A Hidden Mine Field?: Eduardo Telles, Partner, Norman Nadorff, Special Partner, David Weiss, Partner, Mayer Brown
Is that non-negotiable importation clause a hidden minefield? In many jurisdictions, importation rules and regulations are poorly drafted and require interaction with inefficient bureaucracies, using client-mandated procedures. Making matters, worse, drilling contractors are often contractually saddled with non-negotiable obligations regarding rig importation and forced to deal with unclear regulations and with regulators beyond their normal sphere of influence. This panel discussion will explore how to navigate potentially treacherous waters.

3:15 pm Coffee Service

3:30 pm
Contractual Provisions

Contractual Provisions Addressing Anti-Bribery/Anti-Corruption Law Compliance: Paul Ogundipe, Group Lead, Supply Chain Management, Aosorwell Limited
The subject, Contractual Provisions Addressing Anti-Bribery/ Anti-Corruption Law Compliance’ is broadly viewed by defining what corruption is and its corresponding legal action. What are the demands on Corporate sectors and what are the ways and means of navigating the anti-corruption laws with the advent of globalisation. Premise of enacting contract laws as a corruption tool to Addressing anti-bribery/anti-corruption law. We look at the inherent benefits of the contractual provision and the standardisation of contract provision with the view of formalising anti-corruption contractual provision with model clauses. Conclusively, harnessing the expanded Range of Anti-Corruption Commitments.

Small Changes, Serious Consequences: Making the Most of Choice of Law and Dispute Resolution Provisions: Mark Walsh, Partner, Clyde & Co LLP
In this talk we will look at how choice of law and dispute resolution provisions – in particular arbitration provisions – have become more sophisticated over the years, case law that has built up around them and their interpretation, and the advantages of certain provisions over others – as well as some potentially disastrous slips and trips. This is all with a view to improving your position should you find yourself in a dispute situation.

4:30 pm
Indemnities in Contracts: Jeff Davis, Partner, Bradley

5:00 pm Red Oak Ballroom AB
Welcoming Reception

8:00 am   Red Oak Ballroom AB
Registration & Coffee Service

8:30 am   Magnolia Room
Welcome & Introduction

• Mike DuBose, Senior Vice President – International Development, IADC

8:35 am
Proposed Amendments to the Mexican Navigation Law: Enrique Garza, Jr., Clyde & Co

9:00 am
Washington DC Update: Joe Lillis, Vice President, Policy, IADC

9:30 am
Artificial Intelligence in the Practice of Law: Lou Grossman, Partner, Kean Miller
This presentation will work through the American Bar Association Model Rules of Professional Conduct, starting with Rule 1.1 and the lawyer’s obligation to provide competent representation and Rule 1.6 relating to Confidentiality of Information applies when using open-source artificial intelligence. It will also address rules regarding fees and client communications to show how AI has impacted these obligations owed to the client and areas where AI in the litigation context has been used/abused.

10:00 am Coffee Service

10:15 am
Pointers on Contract Drafting

Risks and Issues under Long(er) Term Drilling Contracts: Glenn Kangisser, Partner, Haynes, and Boone
In the context of the continued market recovery in offshore drilling, the paper will consider a number of specific risks and issues arising under longer term drilling contracts drawing on the author’s experience handling contractual issues and disputes over the last 20 years. The talk will draw upon number of case studies and provide the audience with practical drafting pointers and guidance on contractual risk management to help minimize the prospect of issues and disputes.

Points for Negotiation – the Application of Legal Principles to Common Clauses in Drilling Contracts Governed by English or US Law: Charles Lockwood, Partner, Hilary Soileau, K & L Gates LLP
Beware the impact of commonly used phrases and important legal principles on routine clauses found in drilling contracts governed by English or US law. Issues contract managers and inhouse legal should have in mind.

11:15 am
Adjournment

• Tyler Smith, Chair, IADC Contracts Committee; Legal Counsel, Nabors

Unassigned Papers of Note

What is a Ship and Why does it Matter?: Clare Kempkens, Partner, Jody Schisel-Meslin, Felisa Sanchez, K & L Gates LLP
This paper revisits the old question of what a ship is. The answer to that question affects everything from manning and flagging to pollution liabilities, time bars and tax. The paper will offer an English and US law perspective, will look at a recent case in Singapore and will offer a reminder of factors to consider and the current state of play on some important issues.

The Recipe for Success, Integrated Projects and Performance Rewards – Case Study: Andres Nunez, Integration Project Management, SLB
The partnership between the Operator and Integrated Services Provider in a rewards and performance contract, supported the well delivery process during a two-year drilling campaign, achieving the main targets and objectives set. Once the performance contract was set in place, was developed the key actions to reduce the specific project risk anticipated. In an environment under a high-cost operation, a proper historical analysis was established, with the main purpose to outline initiatives to control, measure or minimize the associated project hazards. Early planning based on the well basket and complexity and identification of key technologies help ensure the success of the project and minimise associated risks. All predefined metrics and KPI’s were me, which contributes to a high level of efficiency from the ISP, managing to perform at 100% efficiency in four out of the five wells drilled.