This paper evaluates the mechanisms used in the management of contractual risk, such as; risk allocation amongst the various participants in the international upstream Oil & Gas as well as standard contract forms. The discussion also focuses on judicial interpretation of
standard provisions for indemnity, exclusion and limitation of liability as well as examining landmark industry incidents (such as the Deep Water Horizon, Piper Alpha abd so on) where the contractual provisions of liabilities and
indemnities between the operator and the contractor were tested.
Key Words: Oil & Gas, Upstream, Risk Allocation