Petroleum Business Review

Abstract Oil and gas projects are very complicated, and various risks are included in oil and gas projects and contracts. Different aspects of risks can be addressed in a risk management process in which assessment, efficient distribution, and allocation of contractual risks are critical. Many researchers have studied project risk management in oil and gas industries, focusing on legal and contractual risks aiming to reach an optimal risk distribution, which does not necessarily mean having a complete contract. This work thoroughly studies the related research and performs a complete review of different downstream petrochemical projects contracts to review contractual risk allocation in usance finance contracts. Concentration on used risk management mechanisms in both cases and related risks shows severe issues and bugs in both contracts. Some contractual risks are not addressed, and the case contracts are not balanced regarding contractual risks distribution