Category: Oil and Gas business

Dry gas is a natural gas from wells that do not have a significant content of liquid hydrocarbons or water vapor. Dry gas can also be used to describe gas that has had all liquid removed by a treatment process.

Hydrocarbons with low molecular weight such as methane, ethane, propane and butane

Diversion of LNG cargoes destined for one market place to a higher priced market, such as the diversion of LNG from Oman destined for the Spanish market and shipped instead to the higher paying Asian market. Under certain circumstances the original consumer has even been approached with a request to agree to forfeit their deal and split the extra profit from the Asia deal with the supplier >

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

Libya, a member of the Organization of Petroleum Exporting Countries (OPEC), holds the largest proven oil reserves in Africa, followed by Nigeria and Algeria. Libya had total proven oil reserves of 41.5 billion barrels as of January 2007

Crude oil with a low specific gravity and high API gravity due to the presence of a high proportion of light hydrocarbon fractions

An agreement in which a national government gives an oil company the rights to explore for and produce oil and/or gas in a designated area

LOGIC (Leading Oil and Gas Industry Competitiveness) was created in 1999 by the Government’s Oil and Gas Industry Task Force to improve competitiveness in the UKCS by targeting efficiencies in the supply chain

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”