Let us take an example when a chain of contracts includes the group of operators (composed of the operator) and the group of contractors (composed of the contractor, its subcontractors and subcontractors) who apply compensation and hold personnel violation clauses. At the level of the contract between the operator and the contractor (front-line contract), the operator will himself award compensation to the contractor. For its part, the contractor will award compensation to the operator itself and the underlying companies, i.e. its subcontractors and subcontractors. This contract alone seems to overburden the contractor, who seems to assume the risk for all of them. However, if the clauses are read in all subsequent contracts, the result is that each part of the chain bears the risk it has directly identified and no other risk identified. [20] There are therefore clear benefits for contractors in the implementation of return agreements. However, in practice, it can be difficult to conclude back-to-back agreements. Among the most important aspects of labour contracts, which may require back-to-back provisions, are the “back-to-back” agreements, where a principal contractor attempts to pass on his obligations to the employer to his subcontractors, are becoming more common for construction projects. While they may be a convenient way to transfer risks and commitments down the chain of responsibility, inadequate wording can lead to particularly complex and difficult-to-resolve disputes. The oil and gas industry generally faces risks to people, property, the environment and precious hydrocarbons.

[1] One of the ways in which the oil and gas industry manages these risks is for the parties to spread the risks[3] instead of leaving the issue of liability “decided by general law.” [4] There will usually be, at some point, a large number of parties on a production platform that may not be in direct contact with the operator. [5] Compensation must address this problem by ensuring that the risks are in the right place throughout the contract chain.

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