Month: July 2009

Operating committee of a JOA in an oil and gas exploration operation that meet at regular intervals to decide on budgets and workplans

This document makes the farmee a party to the operating agreement and amends the participating interests of the parties

An agreement between parties who own a working interest in a well that sets out responsibilities and duties of the operator and non operators, including drilling the test well and subsequent wells, and sharing of expenses and accounting methods

It is a method to ensure that all parties have open access use of an LNG terminal and it is thus a transparent capacity allocation mechanism. The allocation is made on a demand basis but users risk losing allocated capacity that has not been used (UIOLI) and thus creates a level playing field. An open season is a call for subscriptions allowing the transparent and non-discriminatory allocation of infrastructures access capacity and the dimensioning of supply to demand if necessary. The open season is often organized in 3 phases: qualification of the applicant, non binding application, binding application. Open season procedure generally consists of a two step process; an open assessment of market demand for a specific proposal (first step) and a subsequent phase of capacity allocation (second step). Availability of sufficient infrastructure remains a key requirement for energy security and the development of a competitive market in natural gas. To foster competition, infrastructure, in addition to being sufficient, should be sold at conditions that fit the market’s needs and should thus be accessible on a non-discriminatory basis (thanks to well-functioning capacity allocation procedures). Open season has the advantage of being a transparent and non-discriminatory approach. It also makes it possible to collect the needs of the entire market, thus indicating optimal investment level trends. The open season method and the first come first served method provide the winner of the tender a more or less secure picture of the situation regarding the amount of capacity ordered from the facility. The open season method enables all those who are interested to submit proposals simultaneously