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The question of responsibility in service agreements in the oil industry is complex and often arises. The key factors include the work location, the type of work or equipment required, and the expectations surrounding the tasks. From the oil company's perspective, the primary aim of a master service agreement is to transfer risk to the service provider. Conversely, service companies seek to limit their liability for damages to the oil company's property, such as oil wells and underground formations. The oil company prefers that the service provider be held accountable for all damage and injuries to both its own and the service provider's equipment and personnel, regardless of whether negligence or wrongdoing was involved.
