Month: July 2009

The document that sets out the rules and procedures for third party access to the British pipeline grid and introduced the regime of daily balancing.

The Uniform Network Code is the hub around which the competitive gas industry revolves, comprising a legal and contractual framework to supply and transport gas. It has a common set of rules for all industry players which ensure that competition can be facilitated on level terms. Network Code in the UK came into effect in March 1996 after two years of negotiation between Transco and the shippers and is in effect a set of business rules within a legal framework defining the rights and obligations of Transco and Shippers and forming the basis of all contracts between them

Netherland, Sewell & Associates, Inc. was established in 1961 and has offices in Dallas and Houston, Texas. They provide services to the worldwide petroleum industry that include reserves reports and audits, acquisition and divestiture evaluations, simulation studies, exploration resources assessments, equity determinations, and management and advisory services

The LNG netback price, which is an export parity price that represents a domestic supplier’s opportunity cost of supplying to the domestic market when the alternative is exporting the gas as LNG, is calculated by taking the price that could be received for a quantity of the fuel and subtracting, or netting back, the costs incurred by the supplier to convert the gas to LNG and ship it to the point of delivery.

Determined by the net revenues from downstream sales, less all the costs associated with bringing the commodity to the market, excluding production and liquefaction costs.

The largest typical costs included in the calculation of LNG netback is the cost for transportation which can represent a significant proportion of the final LNG cost.

A company’s working interest minus royalties paid to the state and/or share of production owed to others under applicable lease and fiscal terms

The sum of the fractional working interest owned in gross acres or gross wells.

Joint ventures in an oil and gas production project look at the number of wells in terms of gross wells and net wells. A net well is deemed to exist when the sum of fractional ownership working interests in gross wells equals one. The number of net wells is the sum of the fractional working interests owned in gross wells expressed as whole numbers and fractions thereof

An interest that receives a portion of the net proceeds from a well, typically after all costs have been paid

it is that portion of reservoir rock which will produce commercial quantities of hydrocarbon