Category: Oil and Gas business

A clause in some long term LNG contracts allowing buyer to reduce one Contract Year ACQ, which is made up in full by increasing the ACQ in the following year or years

The results of a survey which gathers information about the subsurface formations. Logs typically consist of several curves on a long grid that describe properties within the wellbore or surrounding formations that can be interpreted to provide information about the location of oil, gas, and water. The measurement versus depth or time, or both, of one or more physical quantities in or around a well. The term comes from the word “log” used in the sense of a record or a note. Wireline logs are taken downhole, transmitted through a wireline to surface and recorded there. Measurements-while-drilling (MWD) and logging-while-drilling (LWD) logs are also taken downhole. They are either transmitted to surface by mud pulses, or else recorded downhole and retrieved later when the instrument is brought to surface. Mud logs that describe samples of drilled cuttings are taken and recorded on surface.

Low, Best and High Estimates of potentially recoverable volumes should reflect some comparability with the reserves categories of Proved, Proved plus Probable and Proved plus Probable plus Possible respectively. While there may be a significant risk that sub-commercial or undiscovered accumulations will not achieve commercial production, it is useful to consider the range of potentially recoverable volumes independently of such a risk. If probabilistic methods are used, these estimated quantities should be based on methodologies analogous to those applicable to the definitions of reserves; therefore, in general, there should be at least a 90% probability that, assuming the accumulation is developed, the quantities actually recovered will equal or exceed the Low Estimate. In addition, an equivalent probability value of 10% should, in general, be used for the High Estimate. Where deterministic methods are used, a similar analogy to the reserves definitions should be followed. As one possible example, an accumulation that is currently not commercial due solely to the lack of a market. The estimated recoverable volumes are classified as Contingent Resources, with Low, Best and High estimates. Where a market is subsequently developed, and in the absence of any new technical data, the accumulation moves up into the Reserves category and the Proved Reserves estimate would be expected to approximate the previous Low Estimate.

Location on which an LNG facility is to be constructed. Can be onshore or offshore

When a payment for LNG is made under Take or Pay clause, the buyer is often contractually permitted to take delivery of the same amount of (normally free) LNG at a later date. Quantity of make-up LNG allowed to be taken is frequently restricted

Conduct a survey inside a borehole to gather information about the subsurface formations. Logs typically consist of several curves on a long grid that describe properties within the wellbore or surrounding formations that can be interpreted to provide information about the location of oil, gas, and water. Also called well logs, borehole logs, wireline logs, gravity logs, acoustic logs. >

The deepest observed occurrence of a producible hydrocarbon accumulation as demonstrated by well log, flow test or core data

Potential area where one or more accumulations are currently poorly defined and require more data acquisition and/or evaluation in order to be classified as a prospect. A lead will occur within a play.

A project associated with a potential accumulation that is currently poorly defined and requires more data acquisition and/or evaluation in order to be classified as a prospect.

Project activities are focused on acquiring additional data and/or undertaking further evaluation designed to confirm whether or not the lead can be matured into a prospect. Such evaluation includes the assessment of the chance of discovery and, assuming discovery, the range of potential recovery under feasible development scenarios.

Production and disposal or lifting of the petroleum discovered in a reservoir.

The legal contract that specifies the terms and conditions of the business relationship between an oil company and the landowner or mineral rights holder on a particular tract.