Category: Oil and Gas business

The production of oil during a specified period of time.

A well drilled near the discovery well. Also a well drilled to prevent oil and gas from draining from one tract of land to another where a well is being drilled or is already producing

The 1973 oil crisis began on October 17 1973 when the members of OPEC announced as a result of the ongoing Yom Kippur war that they would not longer ship oil to nations that had supported Israel in its conflict with Syria and Egypt. At the same time, OPEC members decided to use their leverage over the world price-setting mechanism for oil in order to raise world oil prices

These regulations set out the minimum experience required in order to be granted an offshore petroleum right, including that of contractors who must have experience in carrying out offshore seismic mapping, necessary drilling experience, etc. The regulations also stipulate that an applicant for an offshore preliminary permit with priority right must have proven financial capacity to cover half the estimated cost of executing the work program to be approved for the license. Under the regulations, an applicant must also relinquish at least 40% of the area of the permit area and will be entitled to request a license under the priority right on the remaining area only. The area of an offshore preliminary right permit with priority right may not exceed 4,000 square km

The term offshore indicates a portion of open sea and, by induction, the activities carried out in such area, while onshore refers to land operations

Geological and geophysical costs, delay rentals, amortization of unproved leasehold costs, and costs to drill exploratory wells that do not find proved reserves are expensed as oil and gas exploration. the costs of an exploratory well are usually carried as an asset if the well finds a sufficient quantity of reserves to justify its capitalization as a producing well and as long as sufficient progress is made assessing the reserves and the economic and operating viability of the project. For certain capital-intensive projects, it may take considerable time to evaluate the future potential of the exploration well and make a determination of its economic viability. The ability to move forward on a project may be dependent on gaining access to transportation or processing facilities or obtaining permits and government or partner approval, the timing of which is beyond the operator’s control. In such cases, exploratory well costs remain suspended as long as the operator is actively pursuing access to necessary facilities and access to such permits and approvals and believe they will be obtained.

A surface location where oil appears, having permeated from its subsurface boundaries and accumulating in small pools.

A potential drill location near to an existing well. The offset distance may be governed by well spacing regulations