05.07.2009

Opposite to contango. Backwardation prevails when the price of a distant futures contract is below that of an earlier delivery. For instance, if in September 2008 crude oil futures for sale in October settled at $97.88 a barrel and the January 2009 delivery finished up at only $97.72, this would mean that the January 2009 market was “backward” by 16 cents a barrel. Put another way, the spot market (where deliveries are made “on the spot”) is 16 cents under January. If you have oil to sell, to whom would you rather deal? To somebody who wants it by October or to someone who wants it after New Year’s Day? You’ll get 16 cents more, and avoid three months of storage costs by dealing your oil in the spot market.

According to the electricity regulations the essential service provider must give back-up services to all of an IPP’s consumers. Thus if an IPP is unable to provide his consumers with electricity due to down time for maintenance or any other reason, IEC is obliged to provide the power

When the government exercises its ‘back-in right’ to purchase a certain percentage of an oil or gas field

SOCAR is one of the largest oil companies in the world.

A consortium of currently 10 petroleum companies that have signed extraction contracts with Azerbaijan. These companies include BP (UK), Chevron (USA), Devon Energy (USA), StatoilHydro (Norway), T?rkiye Petrolleri Anonim Ortakl??? (Turkey), Amerada Hess (USA), State Oil Company of Azerbaijan (Azerbaijan), ExxonMobil (USA), Inpex (Japan), Itochu (Japan). The AIOC made significant investment contributing to the construction of the South Caucasus Pipeline, the Baku-Tbilisi-Ceyhan Pipeline and are currently discussing construction of a Trans-Caspian Oil Pipeline between Kazakhstan and Azerbaijan. Extraction of oil from the Azeri-Chirag-Guneshli fields and natural gas from Shah Deniz has been possible through foreign direct investment in this consortium.

Is a principle stated in 1811 by the Italian chemist Amedeo Avogadro (1776-1856) that “equal volumes of gases at the same temperature and pressure contain the same number of molecules regardless of their chemical nature and physical properties”. This number (Avogadro’s number) is 6.023 X 1023. It is the number of molecules of any gas present in a volume of 22.41 L and is the same for the lightest gas (hydrogen) as for a heavy gas such as carbon dioxide or bromine

The Company’s principal activities are the exploration, extraction and production of crude oil and gas in Israel. During 2006 the Company’s sales were comprised of natural gas, which was supplied to Israel Electric Corporation. Equity held: Yitzhak Tshuva 51%, Migdal 5%, Gideon Tadmor 2.5%, public 41.5%

The revenue requirement of a utility divided by the utility’s sales. Average cost typically includes the costs of existing power plants, transmission, and distribution lines, and other facilities used by a utility to serve its customers. It also included operating and maintenance, tax, and fuel expenses.

Represents the level of output that may be sustained continuously by the electricity utility’s power stations without significant risk of damage to plant and equipment. 

AIPN is a non-profit organization founded in 1981 to enhance the professionalism of cross-border energy negotiators throughout the world. It is comprised of approximately 2200 members in over 80 countries, representing numerous international oil and gas companies, host governments, law firms and academic institutions. Members come from many different disciplines (commercial, technical, academic, and legal) and represent many different international and host governments, oil gas and energy companies, and national and multilateral governmental authorities). Members of AIPN can use the company’s model agreements (GSA, CA, JOA, Farmout, etc.)