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 …
A test of the well’s producing potential usually done during the initial completion phase. Test made to determine the daily rate of oil, gas, and water production. Production testing is carried out after electric logging, especially if the results of these are not conclusive. The testing may last a couple of weeks, cost considerable money …
The amount of production after deducting cost oil production allocated to costs and expenses that will be divided between the participating parties and the host government under the production sharing agreement. Production remaining after allowable cost recovery is commonly referred to as profit oil, profit gas, or profit petroleum and is usually shared between the …
Continue reading “Profit oil; Profit hydrocarbons; Profit gas”
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
When governments try to capture the upside in a production sharing contract to allow them to benefit if oil prices increase
This represents the link between the petroleum accumulation and the decision making process, including budget allocation. A project may constitute the development of a single reservoir or field, or an incremental development for a producing field or the integrated development of a group of several fields. In general, an individual project will represent the level …
Project financing is an innovative financing technique used to fund many large-scale natural resource projects, from pipelines and refineries to electric-generating facilities and hydro-electric projects. Increasingly, project financing is emerging as the preferred alternative to conventional methods of financing infrastructure and other large-scale projects worldwide. Project finance is finance for a particular project which is …
One of several combustible gases which are present in varying quantities with methane in natural gas. When extracted from natural gas as a refined fuel, propane is particularly useful because it can be stored under pressure as a liquid at normal atmospheric temperatures. Propane is actually the gas used in the common barbecue
Opposed to the Open Access method, whereas the owner of a facility, such as an LNG facility has all the rights over the capacity in the facility. Such facilities are also constructed as independent facilities. Until a decade or so ago, most LNG facilities operated under the proprietary access method and only recently have many …
The allocation of production among reservoirs and wells or pipeline allocation of capacity among shippers, etc.
