Master Service Agreements (MSAs) form the core of any Oil & Gas Service provider’s business. Eager to bank on opportunities to work with Oil & Gas majors, Oil & Gas providers frequently overlook major risks by singing multiple MSAs without negotiating their terms.
An MSA is not just a contract; it is a risk management tool. Specifically, the indemnity provisions within the MSA primarily function as the means of risk transfer. Most Most Oil & Gas Companies like to lower their risk by placing it onto the Contractors. A properly drafted, reviewed and negotiated MSA indemnity provisions will help oil and gas providers lower their risks.
To further mitigate risk, Oil & Gas operators use other contractual documents, including MSAs, attachments, insurance agreements, terms and conditions, bills of lading, compliance requirements, safety requirements, work orders, and invoicing procedures. These documents are usually designed within the MSA, to reduce various risks governed therein. Such additional documentation typically contain complicated non-disclosure provisions, lien and liability releases, warranty disclaimers, pollution provisions, precise insurance requirements and complex indemnity language.
Filippov Law attorneys provide Oil and Gas clients with a thorough MSA review and negotiation process. At Filippov Law, we assist clients in creating MSA forms that fit their business needs and help with their MSA negotiations. The opposing party usually does not propose excessive changes or redlines out of a sense of goodwill. At Filippov Law, we have successfully negotiated hundreds of Oil & Gas Company MSAs on behalf of Contractor clients, leading to significant reduction of risk of litigation and insurance premium savings.
At Filippov Law, we examine each of our clients’ MSAs for risk and cost for Contractors; and successfully negotiate indemnity provisions leading to a reduction of risk and insurance premiums.
How does your counsel manage the indemnity risk of your MSAs? Are they putting the effort in to reduce your insurance costs and minimize your balance sheet (self-insured) exposure? If not, contact us today for a no-obligation assessment of your overall legal needs and risk management program. Call us at 832-900-2177 or email our managing member directly at [email protected] to schedule an appointment.
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