An Innovative and Transparent Negotiation Mechanism for the Petroleum Contracts to Develop Marginal Oil Fields

2021 ◽  
Author(s):  
Tsung-Wen Shiaoi
Keyword(s):  
Commodity Price ◽  
Oil Fields ◽  
Publicly Traded ◽  
Balance Sheets ◽  
Oil Companies ◽  
National Welfare ◽  
Recoverable Reserve ◽  
Fiscal Regime ◽  
Negotiation Mechanism ◽  
Marginal Field

Abstract This study is to propose a transparent mechanism among host governments and international oil companies (or IOCs) so an amicable "win-win" situation can be achieved on the negotiation of the petroleum contracts for the development of marginal fields. Marginal field has various definitions. It can be a field with recoverable reserve not exceeding 30 million barrels of oil or 500 billion standard cubic feet of natural gas (Abdul Razak 2011, Malaysian Petroleum Income Tax Act 1967). It also can be a field, somehow "stranded", needs an oil price of US$60/bbl to be commercial (Aziz 2019). Or as simpe as it can be, a marginal field in Nigeria is any field being left unattended for more than ten years from the date of discovery (Auwalu 2020). In this paper, the author recommends that a marginal field be difined as any undeveloped field with a zero present value at 10% discount rate (or PV10 Value = 0) based on the average commodity price of previous 12 months’ first-day-of-the-month prices. This definition is conformable to the SEC pricing guidelines for publicly traded IOCs in the U.S.A. (Scheig n.d.). Host governments endeavor to bring foreign fund and technology to develop their hydrocarbon resources effectively for the benefit of national welfare. IOCs are eager to expand into other promising areas for more hydrocarbon reserves in order to strengthen the balance sheets. A well-designed petroleum fiscal regime can thus achieve the balance between host governments and IOCs (Tordo 2007).

scholarly journals Two-Stage Geothermal Well Clustering for Oil-to-Water Conversion on Mature Oil Fields

Geosciences ◽  
2021 ◽  
Vol 11 (11) ◽  
pp. 470
Author(s):  
Josipa Hranić ◽  
Sara Raos ◽  
Eric Leoutre ◽  
Ivan Rajšl
Keyword(s):  
Spatial Arrangement ◽  
Oil Wells ◽  
Oil Field ◽  
Oil Fields ◽  
Two Stage ◽  
Oil Companies ◽  
Geothermal Potential ◽  
Clustering Approach ◽  
Water Cut

There are numerous oil fields that are approaching the end of their lifetime and that have great geothermal potential considering temperature and water cut. On the other hand, the oil industry is facing challenges due to increasingly stringent environmental regulations. An example of this is the case of France where oil extraction will be forbidden starting from the year 2035. Therefore, some oil companies are considering switching from the oil business to investing in geothermal projects conducted on existing oil wells. The proposed methodology and developed conversions present the evaluation of existing geothermal potentials for each oil field in terms of water temperature and flow rate. An additional important aspect is also the spatial distribution of existing oil wells related to the specific oil field. This paper proposes a two-stage clustering approach for grouping similar wells in terms of their temperature properties. Once grouped on a temperature basis, these clusters should be clustered once more with respect to their spatial arrangement in order to optimize the location of production facilities. The outputs regarding production quantities and economic and environmental aspects will provide insight into the optimal scenario for oil-to-water conversion. The scenarios differ in terms of produced energy and technology used. A case study has been developed where the comparison of overall fields and clustered fields is shown, together with the formed scenarios that can further determine the possible conversion of petroleum assets to a geothermal assets.

Ecuadorian government seeks to boost oil activity

2015 ◽  
Keyword(s):  
Primary Source ◽  
Oil Prices ◽  
World Market ◽  
Balance Of Payments ◽  
Oil Fields ◽  
Content Type ◽  
Oil Companies ◽  
Oil Sector ◽  
The Government ◽  
Total Oil

Subject The outlook for the oil sector. Significance While Ecuador is the smallest member of OPEC, oil is its largest export and the government's primary source of revenue. The collapse of world oil prices has forced the government to introduce import controls to support the balance of payments and cut public spending to reduce the budget deficit. However, rising levels of oil production have softened the blow of falling oil prices. The government hopes to continue this trend by attracting new investment into the oil sector, despite the downturn in the world market. Impacts The perilous state of the balance of payments and public finances will increase the need to attract new foreign investment into oil. Chinese oil companies are likely to increase their presence in Ecuador, reflecting trends elsewhere in Latin America. Development of the oil fields previously integrated into Yasuni/ITT should increase total oil output significantly from 2018-19.

Production Optimization in a Marginal Field through Established Reservoir Management Techniques – A Case Study

2016 ◽  
Author(s):  
Williams Toluse ◽  
Victor Okolo ◽  
Amarquaye Martey
Keyword(s):  
Production Management ◽  
Oil And Gas ◽  
New Technologies ◽  
Reservoir Management ◽  
Production Optimization ◽  
Maximum Efficiency ◽  
Well Placement ◽  
Oil Companies ◽  
Marginal Field

ABSTRACT The Federal Government of Nigeria in a bid to promote indigenous companies participation in the oil and gas sector, and to grow the nation’s production capacity passed legislation in 1999 to foster the exploitation of Marginal Oil Fields (MOFs). MOF is one that is considered non – commercial as a result of strategic business development philosophy of the operator, often times large oil companies. Reservoir management is central to the effective exploitation of any hydrocarbon asset; this dependence is heightened for an undeveloped marginal field. There is no ‘one-size fits all’ approach to reservoir management; this paper reviews some techniques adopted by Midwestern Oil and Gas Ltd in the development of the Umusadege marginal field. These techniques fall under three categories: (I) subsurface study (II) well placement and spacing, (III) integrated surface production and optimization, in accordance with regulatory practices.  The previously acquired 3-D seismic data was reprocessed and interpretation of reservoir heterogeneities within the Umusadege field concessionary boundary carried out form the basis of the initial field development plan. To optimize reservoir drainage, the general principles of non-interference well spacing were employed, and advanced well placement technology was deployed to guarantee optimum well placement within the reservoir for effective and efficient drainage. Subsequently, 14 vertical wells and 4 horizontal wells were drilled to effectively optimize recovery from the field. Prior to bringing these wells on-stream, clean-up and Maximum Efficiency Rate (MER) tests were conducted to determine the optimum choke settings, GOR and water cut limits for all wells. An integrated approach encompassing choke sizing, gas and water production management, vessel and line sizing were implemented on the Umusadege field to maintain and optimize recovery. Crude custody transfer measurements and export were enabled by an optimized Group Gathering Facility (GGF).The above techniques combining new technologies, traditional reservoir and production strategies led to the successful development of the Umusadege field; increasing daily oil production from 2,000 bbls/d from the first well re-entry to approximately 30,000 bbls/day over a 7-year period. This case study proves that with the correct implementation of the key elements of reservoir management the value of any hydrocarbon asset can be maximized in a cost effective, safe and environmentally friendly manner.

Improvement of Uniform Oil Displacement Technology on the Example of Kazakhstani Fields

2018 ◽  
Vol 9 (3) ◽  
pp. 542
Author(s):  
Abdeli D. ZHUMADILULI ◽  
Irina V. PANFILOV ◽  
Jamilyam A. ISMAILOVA
Keyword(s):  
Oil Recovery ◽  
Research University ◽  
Water Injection ◽  
Oil Fields ◽  
Simulation Test ◽  
Sweep Efficiency ◽  
Oil Companies ◽  
Industrial Companies ◽  
Energy Current ◽  
Water Cut

Most of oil companies today are focused on increasing the recovery factor from their oil fields. New drilling and well technologies as well as last advances in reservoir management, monitoring and Enhanced Oil Recovery (EOR) methods are thought to play a major role to meet the future demand of energy. Current decline in discovery of new oilfields intensified by a decline in oil prices make industrial companies to work on development of new efficient and economic techniques that will allow better production at lower cost. One such technology developed at Kazakh National Research University is presented in this paper. The latter propose the use of specific perforated holes on tubing liners in order to control the rate of water injection into variably permeable layers and to prevent non-uniform displacement of oil. The study was initially conducted on experimental facility that proved a positive correlation between the perforation density and water flow rates. Then the simulation test was performed using the data from several Kazakhstani oil fields. The results show an increase of sweep efficiency as well as a decrease in water-cut compared to traditional well case.

Design Research on the Composite Process of Consecutive Perforation-Strong Pulse Fracturing for Multiple Oil Layers and Thick Interlayer

2012 ◽  
Vol 482-484 ◽  
pp. 343-346
Author(s):  
Jin Jun Wu ◽  
Li Cai Liu ◽  
Guo Hua Zhao ◽  
Xiao San Chu
Keyword(s):  
Design Research ◽  
High Energy ◽  
Oil Fields ◽  
Construction Technology ◽  
Oil Companies ◽  
Test Application ◽  
Long Time ◽  
Single Well ◽  
The Cost ◽  
Production Period

Currently, most of Chinese oil companies have getting in the later production period, the oil wells are processed frequently and the cost is increasing. In view of the higher problems existed popular in the oil fields such as multiple layers, big interlayer, the technology composited perforation and high energy gas fracturing has to construct with every layer alone, operate long time, cost high. The author puts forward the design research on the composite process of consecutive perforation-strong pulse fracturing for multiple oil layers and thick interlayer This paper introduces the basic design principle and technology method. The design is realized by using the technology of the perforation-symmetrical overpressure fracturing technology, the multi-pulse multistage fracturing, to efficiently guarantee the effect of perforating and pulse fracturing in every layer. The designed multistage detonating device makes the once completed construction technology used in the single well of the multiple oil layers with big interlayer come true. The field test application has gained good effects, greatly reduced the construction cost, and also promoted the application and generalization of the technology composited perforation and high energy gas fracturing.

The Petroleum Industry in Transition: Antitrust and the Decline of Monopoly Control in Oil

1980 ◽  
Vol 40 (4) ◽  
pp. 815-837 ◽  
Author(s):  
Joseph A. Pratt
Keyword(s):  
New Jersey ◽  
Market Structure ◽  
Petroleum Industry ◽  
Oil Industry ◽  
The State ◽  
Oil Fields ◽  
State Laws ◽  
Oil Companies ◽  
Regulatory Policies

The discovery of vast oil fields in Texas after 1901 encouraged competition in an industry previously dominated by Standard Oil of New Jersey. The manner in which the state of Texas enforced its antitrust and corporation laws hastened the growth of several major new oil companies, most notably Gulf Oil and The Texas Company, by constraining the activities of Standard in the new fields. In so doing, these Texas laws shaped the transition from near monopoly to near oligopoly in the oil industry. Such beneficial results of state laws were, however, largely accidental, since weaknesses in the government's capacity to monitor changes in the burgeoning industry undermined its ability to define and implement systematic regulatory policies. Problems of adjustment that accompanied government's early efforts to regulate market structure in oil have continued to hamper subsequent efforts to regulate other aspects of the industry's operations.

scholarly journals Internationalization and Corporate Cash Holdings: Evidence from Brazil and Mexico

2015 ◽  
Vol 19 (spe) ◽  
pp. 1-19
Author(s):  
Newton Arata ◽  
Hsia Hua Sheng ◽  
Mayra Ivanoff Lora
Keyword(s):  
Cash Holdings ◽  
Cash Holding ◽  
Publicly Traded ◽  
Pecking Order ◽  
Balance Sheets ◽  
Publicly Traded Companies ◽  
The North ◽  
The Relationship ◽  
Corporate Cash Holdings ◽  
Degree Of Internationalization

This research expands on previous studies of cash holdings and their determinants by studying the relationship between the degree of internationalization and the level of corporate cash holdings. We used a sample of non-financial, publicly traded companies from Brazil and Mexico for the period from 2006 to 2010. Our results suggest that the degree of internationalization is a determinant of cash, and that cash holding increases quadratically as the degree of company internationalization grows. Such behavior was different from the North American company studies in Chiang and Wang (2011). Similar to previous studies, both Trade-off and Pecking Order predictions are relevant control variables in our model. Finally, companies held less cash on their balance sheets during the pre-crisis period.

Sign in / Sign up

Export Citation Format

Share Document