LEAP POINT OF VIEW: MASTER AGREEMENT MANAGEMENT AND NEGOTIATION. BEST PRACTICES, LESSONS LEARNED, AND CHALLENGES IN NEGOTIATING AND MANAGING MASTER AGREEMENTS LEAP GENERAL MEETING – HOUSTON, TEXAS SEPTEMBER, 2012. WHAT WE HOPE TO COVER TODAY. “WHAT’S OUR ANGLE?” - BACKGROUND AND PURPOSE
BEST PRACTICES, LESSONS LEARNED, AND CHALLENGES IN NEGOTIATING AND MANAGING MASTER AGREEMENTS
LEAP GENERAL MEETING – HOUSTON, TEXAS
“WHAT’S OUR ANGLE?” - BACKGROUND AND PURPOSE
MARKET OVERVIEW: MASTER AGREEMENT ADMINISTRATION PRACTICES
BEST PRACTICES AS SEEN FROM THE “OUTSIDE” OF SUCCESSFUL COMPANIES
WHAT MORE CAN LEAP DO?
Panel Facilitator: Kevin Jandora, LEAP project manager, former head of Global Physical Oil Operations for Morgan Stanley
Richard England – Contracts Team Lead, for Shell (STUSCO Products)
Karen Mikkelborg – Senior North American Contract Negotiator and Special Projects for Nexen
Vivian Ramos – Team Lead, Crude Contracts and Master Agreements for Chevron
Marianne Ryan – Master Agreement Specialist for BP
…but we often collectively and individually have faced barriers to increased adoption of these documents for our markets
Review Standard Templates TRADING
Cross Functional DiscussionsPOSSIBLE APPROACH TO MASTER AGREEMENT MANAGEMENT FOR OIL TRADING
Develop Cover Sheets
Deal Frequency / Risk
Send / Exchange Cover Sheets
Has performed a “Rolodex” function for parties interested in contacting LEAP and non-LEAP members for years
Has performed an advocacy and education function through industry functions such as the LEAP GMM, Marcus Evans conferences and ISDA conferences.
Stayed in touch with other industry organizations (e.g. ISDA, NAESB, Energy Institute) on their docs.
Has reached out to technology vendors to educate on the latest available services in the market.
Has assisted with requirements gathering related to expansion of existing confirmation services.