Lifting agreement is usually a supplemental agreement to a JOA that sets out the rights, obligations and procedures for the lifting of liquid petroleum under the contract. Such a lifting agreement is often based on the AIPN Model Form Lifting Procedure.
Refers to tankers and barges loading cargoes of petroleum at a terminal or transshipment point.
When a governmental body offers exploration acreage for leasing by exploration and production companies, typically in return for a licensing fee and an obligation to perform a set program. This program can include acquisition of seismic data or drilling a well. Exploration licenses are initially of limited duration (about 3-5 years) after which there might be a requirement to return half or more of the licensed acreage to the state after the licensee has selected the area in which he wants to pursue his activities. If hydrocarbons are discovered, a separate production license or production-sharing agreement is usually drawn up before development can proceed
From the technical (i.e. non legal point of view) this term has been described as “the identification by a government of potential (upstream) petroleum investment opportunities in the national territory, their subdivision into Contract Areas of prospective size, their offering to the international oil companies by a suitable tendering process and the establishment and negotiation of technical, financial and contractual terms and conditions (for award) consistent with their petroleum prospectivity and with the national interest”
Authority that grants the license to the licensee
Licensing may be generally described as the process by which the owner of natural resources (usually the State) authorises or permits a public or private entity to exploit the natural resources and to regulate the manner in which operations under the license are conducted. This highlights two key aspects of licensing – the grant of rights and the regulation of operations. The main fiscal regimes in the oil and gas field are known as licensing agreements (where the entrepreneur takes most of the risks) or production sharing contracts or risk service contracts where the government takes a higher risk).
Under a competitive bidding system, applicants are typically required to meet certain requirements to participate in the bidding process. The winner of the bid would be determined on the basis of competitive sealed bids. The bid may be based on the percentage of royalty which an applicant may be willing to offer or the cash bonus offered by the applicant for the license
