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In the oil and gas industry, thorough planning and coordination are essential to ensure efficient and uninterrupted operations. One of the key agreements that facilitates this coordination is the master service agreement, commonly referred to as an MSA. An oilfield MSA serves as a contractual framework that governs ongoing and future work between an operator and its contractors.
Master service agreements are widely used across the industry to cover a broad range of services, including drilling, exploration, maintenance, transportation, and logistics. By establishing baseline contractual terms at the outset of a working relationship, MSAs help reduce risk, streamline operations, and provide clarity for all parties involved.
For additional background on industry contracting practices, see the American Petroleum Institute’s overview of oil and gas operations: https://www.api.org.
One of the primary functions of an MSA is to create a standardized approach to contracting services and goods. With an MSA in place, companies can avoid renegotiating core legal and commercial terms for each individual project or job. This saves time, reduces administrative costs, and allows operators and contractors to mobilize quickly when work arises.
Standardization also promotes consistency in service delivery and helps ensure compliance with applicable laws, safety standards, and industry regulations. This is particularly important in an industry subject to extensive oversight from regulatory bodies such as OSHA and other federal and state agencies: https://www.osha.gov.
Oilfield MSAs are typically long-term agreements that may remain in effect for several years or continue indefinitely until terminated by the parties. While specific terms vary, MSAs commonly address the following issues:
These provisions form the legal backbone of the parties’ working relationship and significantly impact risk exposure and financial responsibility over time.
While an MSA establishes general terms and conditions, individual projects are typically governed by work orders. A work order is a separate agreement that incorporates the MSA by reference and sets out the specific details of a particular job.
Work orders usually address:
Together, the MSA and work orders create a flexible yet comprehensive contracting structure that allows parties to undertake multiple projects efficiently under a single legal framework.
Despite their widespread use, there is no universally accepted standard MSA form in the oil and gas industry. Many operators and contractors rely on their own proprietary MSA templates, which often contain commercial and risk-allocation provisions heavily favoring the drafting party.
As a result, negotiating MSAs frequently requires substantial effort and attention to detail, often under time pressure when services are needed urgently. Poorly negotiated terms can expose companies to significant liability, insurance gaps, and operational risk.
Engaging experienced legal counsel to review, draft, and negotiate oilfield MSAs is therefore essential. Dore Rothberg Law has attorneys with extensive experience advising operators and service companies on efficient and effective MSA drafting and negotiation.
Doré Rothberg – Houston & Fort Worth Law Firm.
This article was written by Brian Shelton, an attorney with extensive experience in oil and gas. Learn more about Brian Shelton here: Brian Joseph Shelton – Dore Rothberg Law, P.C.
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