Category: Oil and Gas business

Countries that are not members of OPEC and which include the UK, Mexico, Norway, Oman, Kazakhstan and Russia

A type of oil that is sourced from the North Sea, now primarily from the UK, Norway, Denmark, the Netherlands and Germany. This type of oil is part of the price benchmark for almost two-thirds of the world’s oil. Brent is one of the four North Sea oil varieties used to price crude from the Middle East, Africa and Russia. The other grades are Forties, produced by BP Plc, Norsk Hydro ASA’s Oseberg blend and ConocoPhillips’s Ekofisk. Brent crude oil is not as light or as sweet as its counterpart, West Texas Intermediate oil.

A non participating interest is an interest in oil and gas that lacks the right to join in the execution of oil and gas leases and the right to develop.  A non participating interest can be either a royalty interest or a mineral interest, with the primary difference being that the latter may share in bonus and delay rental, while the former shares in royalty only. Neither interest has the power to execute an oil and gas lease

A GSA contract will normally lay down a procedure for the time when the daily or weekly nomination of gas volumes should be made by the buyer. It will also specify the buyer’s rights to vary the nomination at short notice and the speed with which the seller must respond to such changes

Odor is added to natural gas for safety purposes since in its natural form it is odorless

A percentage share of production or the value derived from production without having to incur the costs of drilling and producing, created by the lessor or royalty owner and borne by the lessor or royalty owner out of the lessor royalty. This royalty is paid to nonparticipating interest holders who do not share or participate in bonus or rentals, or a right to explore, or a right to execute oil and gas leases

Novation document is a document that updates an existing legal document, so that a JOA or a GSA would be novated. For instance, a Novation agreement would make the farmee a party to the operating agreement and amends the participating interests of the parties

The process by which the buyer informs the seller of how much LNG it intends to take in a coming Contract Year under a long term supply contract. Typically, in LNG, nomination schedules work as follows: At least 90 days before a new Contract Year, both parties will seek to agree a program containing (a) buyer’s binding nominations for cargoes for each calendar month in the coming Contract Year (b) indicative nominations from buyer for cargoes likely to be required in each calendar month of the following two years, (c) shutdowns and maintenance planned for buyer’s LNG facilities in the coming Contract Year (d) shutdowns and maintenance planned for seller’s LNG facilities in the coming Contract Year. LNG delivery schedules may typically only be changed by mutual consent after being agreed. If a delivery schedule cannot be agreed within the timeframe laid out in the nomination section of a long term contract, a final delivery program is often set by the buyer, after taking account of seller’s available cargoes.

Adding odor to natural gas so it can be detected