In a farmout agreement, this is the ratio between expenditure and interest earned in a license. An arrangement whereby a farmee reimburses the farmor’s past costs and pays for exploration work and then takes a pro rata share of the farmor’s interest is known as a ground floor deal, but if the farmee only earns half the farmor’s interest in return for paying all the cost of the work it is described as a two for one promote
An examination of reservoir fluids in a laboratory under various pressures, volumes, and temperatures to determine the characteristics and behavior of the fluid
When certain consumers receive priority allocation of gas, for instance when Russia cut off gas supplies to the Ukraine, home consumers received priority allocation of gas over industrial users. Priority allocation can be used in cases where demand is greater than supply
Under a typical production sharing agreement, the contractor is responsible for the field development and all exploration and development expenses. In return the contractor is entitled to a share of the remaining profit oil or gas. The contractor receives payment in oil or gas production and is exposed to both technical and market risks
Costs incurred to operate and maintain wells and related equipment and facilities, including depreciation and applicable operating costs of support equipment and facilities and other costs of operating and maintaining those wells and related equipment and facilities. They become part of the cost of oil and gas produced, such as: costs of labor to operate the wells and related equipment and facilities; repair and maintenance costs; the costs of materials, supplies, and fuels consumed and services utilized in operating the wells and related equipment and facilities; the costs of property taxes and insurance applicable to proved properties and wells and related equipment and facilities; the costs of severance taxes; depreciation, depletion, and amortization (DD&A) of capitalized acquisition. Exploration, and development costs are not production costs, but also become part of the cost of oil and gas produced along with production (lifting) costs identified above. Production costs include the following subcategories of costs: well workers and maintenance; operating fluid injections and improved recovery programs; operating gas processing plants; ad valorem taxes; production or severance taxes; other, including overhead
Prestack depth migration is a key seismic technology for improving oil discovery in global oil exploration activities that works especially well for complex geological structures such as subsalt layers, basement fractures and other high-velocity layers. Compared to conventional time migration image processing, which assumes that seismic waves are propagated in straight rays, PSDM is more expensive and time consuming but is more likely to precisely determine the structure of oil and gas reservoirs
For an LNG project, 10 million cubic meters per day of production is universally seen as the minimum requirement to start an LNG project. When a discovery is made, it becomes necessary to decide on the optimal number of wells to be drilled to befit development costs and consumption needs of the market. On average each natural gas well can flow at a rate of about 75 MMscf/D
