Reference no: EM132432648

Scenario: You read in the local newspaper (ok, probably on your iPhone) that Genitempo-Cardoza Drilling (GC-D), the division of PEMEX specializing in light, sweet crude, has tapped another substantial deposit. This discovery and access means major profits for GC-D, and also new contracting opportunities for various support companies. Schlumberger and Morgan-Ali-Perry Corporation (MAP Corp) are competing to provide cementing field services and related support. You are a consultant to GC-D and MAP Corp and have been given a waiver (possible conflicts of interest, right?) to advise both clients in a joint meeting on three (3) issues.

If GC-D contracts with both Schlumberger and MAP Corp to provide services as independent contractors:

1) Should GC-D carry both Schlumberger and MAP Corp under its employment insurance?

2) If Schlumberger is providing only labor/people to operate and MAP Corp is providing only equipment, will Schlumberger and MAP Corp need to establish contracts with each other/between their two companies, or just GC-D independently?

3) If MAP Corp is shipping its equipment from its Texas base to Mexico, what entities (government and private) might be involved in that transfer?