Abstract
This paper presents a broad overview of the current state of the oil and gas engineering, procurement, and construction (EPC) contractor base following a period of challenging market conditions, subsequent owner/operator investment deferments, and the resulting financial impacts to the contractor base. These factors have caused a reduced tolerance for oil and gas volatility and a reduced appetite for lump sum contract risk. This paper identifies alternative contracting approaches to traditional competitively bid lump sum contracting. These alternative approaches result in a better understanding and assignment of risk between owner/operator and contractor, encourage continued participation by contractors in the oil and gas sector, and increase the probability of successful project outcomes.
EASTERN SIBERIA AND THE FAR EAST AS A BASIS FOR SUSTAINABLE DEVELOPMENT OF RUSSIAN OIL AND GAS COMPLEX