Category: Oil and Gas business

The process of turning LNG – which is liquefied natural gas – back into its gaseous phase

An interest in a well or property that becomes effective at a specified time in the future or on the occurrence of a specified future event. The right of future possession of an interest in a property when a specified condition has been met. Such as when Australian company Origin acquired its CSG assets from Tri-Star Petroleum in 2002, it gave Tri-Star the right to take back 45 per cent of its share in each field once it had achieved payback, which is judged on a formula linked to Origin’s capital and other costs, which mean Origin could be compelled to hand a significant proportion back to Tri-Star Petroleum.

Dismantle an operational unit such as an onshore drilling rig after operations

These are very similar to the production sharing contracts, with the exception of contractor payment. With these contracts, the contractor usually receives a defined share of revenue rather than a share of the production. As in the production-sharing contract, the contractor provides the capital and technical expertise required for exploration and development. If exploration is successful, the contractor can recover those costs from the sale revenues

Setting up an operational unit such as an onshore drilling rig before operations. To prepare equipment for an operation

In the oil and gas sector, revenues from the sales of crude oil and natural gas are recorded when the product is delivered at a fixed or determinable price, title has transferred and collectibility is reasonably assured.