Industry
Natural Gas & NGLs
Case Studies
Production Sharing Contract Dispute - When Things Go Sour
April 29, 2025
Introduction: A dispute arose when the government terminated its production sharing contract due to unforeseen gas processing facility engineering design requirements for sour gas treatment. Baker & O’Brien assessed whether the development concept and gas commercialization plan conformed with prudent international petroleum practice. We produced several expert reports, including a joint expert report, and testified at hearings before an arbitration panel.
A Project Gone Wrong - What Happened, and Who was at Fault?
January 1, 2017
The developer of a natural gas processing facility had a dispute with the owner over the compounding of cost and inordinate delay in mechanical completion. At issue were project planning and project management pitted against labor disruptions, lack of staff for key positions, industry cost escalation, and weather disruptions. We submitted our opinion of the effects on project progress and costs in a technical report submitted to the arbitration tribunal, followed by oral testimony at the hearing.