scholarly journals Contractual Systems in the Oil and Gas Sector: Current Status and Development

Energies ◽  
2021 ◽  
Vol 14 (17) ◽  
pp. 5497
Author(s):  
Fatima Dirani ◽  
Tatiana Ponomarenko
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Current Status ◽  
Gas Industry ◽  
Advantages And Disadvantages ◽  
Natural Resource Extraction ◽  
Production Sharing ◽  
Contractual Agreements ◽  
Key Aspects ◽  
Oil And Gas Sector

Production activities in the oil and gas industry are capital-intensive and associated with high technology, with these assets not always being available to oil-producing countries or national companies. Any form of interaction between the parties involved in natural resource extraction requires clear regulation regarding contractual relationships. This study attempts to analyze Indonesia’s production sharing contract system in order to assess its applicability to other conditions. The article covers the key aspects of contract theory, provides a classification of contractual systems in the oil and gas sector, and discusses the most common types of contractual agreements. It also considers the key principles of production sharing contracts (PSCs), analyzes the development of PSC practices in Indonesia over the past sixty years, and highlights PSC advantages and disadvantages.

scholarly journals Comparative Analysis of Nigeria and Malaysia’s Production Sharing Contract (PSC)

2021 ◽  
Vol 6 (1) ◽  
pp. 11-17
Author(s):  
Victor D. Ola ◽  
Azubuike H. Amadi ◽  
Raphael Okeke ◽  
Paul O. Okafor
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Oil Companies ◽  
Production Sharing ◽  
Recovery Cost ◽  
Contractual Agreements ◽  
The Government ◽  
Reserve Size ◽  
Oil Company

The oil and gas industry is governed by policies with the aim of smoothening the business relationship between the Government, the International Oil Companies (IOC’s) and the Host communities. Different oil producing countries have their own laws governing petroleum activities and these laws vary from country to country based on the B-PEST factors which are Biological, Political, Environmental, Social and Technology. However, reserve size and oil type can also influence petroleum laws. Countries like Nigeria relies strongly on petroleum bills such as the PIB in which this research will be analyzing the Production Sharing Contract (PSC) which is a significant subset of the PIB. Comparison between the existing PSC of Malaysia and that of Nigeria was captured in this research and the analysis of the PSC was done based on the Government Take, National Oil Company (NOC) and the Contractor’s benefits. 26.67% and 56.58% recovery cost, 28.67% and 26.28% Government revenue, 23.14% and 7.64% NOC share, 21.52% and 9.50% Contractor share of revenue per barrel was arrived at for Malaysia and Nigeria respectively, showing that the Malaysian PSC model yields more income to the country when compared to that of Nigeria without necessarily short-changing the contractors or the IOCs. Finally, the reasons behind these deficits were highlighted and recommendations made to improve the PSC and benefits for all parties to the contractual agreements.

Trends and Prospects of Development of the Oil and Gas Sector in the Context of Digitalization

2020 ◽  
Vol 26 (1) ◽  
pp. 35-45 ◽  
Author(s):  
A. G. Kazanin
Keyword(s):  
Oil And Gas ◽  
Digital Technologies ◽  
Oil And Gas Industry ◽  
Global Market ◽  
The Arctic ◽  
Business And Society ◽  
Gas Industry ◽  
Exploration And Production ◽  
Oil And Gas Sector

The modern oil and gas industry is heavily dependent on the processes and trends driven by the accelerating digitalization of the economy. Thus, the digitalization of the oil and gas sector has become Russia’s top priority, which involves a technological and structural transformation of all production processes and stages.Aim. The presented study aims to identify the major trends and prospects of development of the Russian oil and gas sector in the context of its digitalization and formation of the digital economy.Tasks. The authors analyze the major trends in the development of the oil and gas industry at a global scale and in Russia with allowance for the prospects of accelerated exploration of the Arctic; determine the best practices of implementation of digital technologies by oil and gas companies as well as the prospects and obstacles for the subsequent transfer of digital technologies to the Russian oil and gas industry.Methods. This study uses general scientific methods, such as analysis, synthesis, and scientific generalization.Results. Arctic hydrocarbons will become increasingly important to Russia in the long term, and their exploration and production will require the implementation of innovative technologies. Priority directions for the development of many oil and gas producers will include active application of digital technologies as a whole (different types of robots that could replace people in performing complex procedures), processing and analysis of big data using artificial intelligence to optimize processes, particularly in the field of exploration and production, processing and transportation. Digitalization of the oil and gas sector is a powerful factor in the improvement of the efficiency of the Russian economy. However, Russian companies are notably lagging behind in this field of innovative development and there are problems and high risks that need to be overcome to realize its potential for business and society.Conclusions. Given the strategic importance of the oil and gas industry for Russia, its sustainable development and national security, it is recommendable to focus on the development and implementation of digital technologies. This is crucial for the digitalization of long-term projection and strategic planning, assessment of the role and place of Russia and its largest energy companies in the global market with allowance for a maximum number of different internal and external factors.

scholarly journals Biofuels as an instrument of Russia hydrocarbons and agrarian exports competitiveness

2020 ◽  
Vol 175 ◽  
pp. 13029
Author(s):  
Denis Ushakov ◽  
Oleg Patlasov
Keyword(s):  
Oil And Gas ◽  
Raw Materials ◽  
Oil And Gas Industry ◽  
Business Value ◽  
Creative Economy ◽  
Gas Industry ◽  
Hydrocarbon Production ◽  
Advantages And Disadvantages ◽  
High Level ◽  
Science Intensity

Paper analyzes the prospects of biofuels second and third generation in the structure of the global energy balance, demonstrates a sharp decline in oil and gas revenues in the Russian budget, describes advantages and disadvantages of biodiesel and bioethanol production. The connection between the growth of Russia’s export potential in terms of hydrocarbon products processing with EU standards implementation has been proved. The problems of the realization of programs on the oxygenate technologies development in the Union State of Russia-Belarus were revealed. The capacity of the market of 3-4 generations fuel with using non-food raw materials and various types of biomass was estimated. Was proved that at a high level of growth in business value and profitability of production there are incentives to organize deep processing in Russia’s hydrocarbon production. It is proved that the oil and gas industry in a creative economy should increase its science intensity and depth of raw materials processing, including ones in related industries.

Additive Manufacturing in the Oil and Gas Industry Overview

2020 ◽  
Author(s):  
Carlo De Bernardi
Keyword(s):  
Additive Manufacturing ◽  
Inventory Management ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Lessons Learned ◽  
Current Status ◽  
Gas Industry ◽  
Standardization Process ◽  
Process Feedback ◽  
Different Levels

Abstract The API 20S Standard is designed to play a crucial role in leveraging Additive Manufacturing (AM) to foster innovation in the oil and gas industry. The paper, in association with the standard, will facilitate the understanding of how AM will enable equipment design improvements, faster prototyping, and better inventory management. By way of discussing the progress, challenges, and lessons learned from the standardization process, the paper aims to encourage a safer, broader, and faster adoption of AM technologies in the mainstream oil and gas applications. The paper will summarize the streamlining process, feedback from the API 20S task group, and current status of the standardization efforts. Additionally, upcoming challenges and the potential for the oil and gas industry industries to contribute to the standard will be summarized. The paper will also showcase a novel tiered approach (Additive Manufacturing Specification Levels) to allow the users of the document to match different levels of criticality.

scholarly journals Strategic perspectives of the oil and gas sector industrial development

2021 ◽  
Vol 14 (4) ◽  
pp. 369-374
Author(s):  
O. I. Kalinskiy ◽  
M. A. Afonasiev
Keyword(s):  
Carbon Capture ◽  
Industrial Development ◽  
Oil And Gas ◽  
Storage System ◽  
Carbon Capture And Storage ◽  
Energy Transition ◽  
Oil And Gas Industry ◽  
Low Carbon ◽  
Gas Industry ◽  
Oil And Gas Sector

The authors study oil and gas industry, its condition and perspective trends of industrial development. One of them involves applying low carbon and low cost technologies. The authors introduce new strategic imperatives in oil and gas sector to perform energy transition. They study the types of categories of perspective trends of the industry’s development: scaling up the development and implementation of a carbon capture and storage system, using low carbon raw materials, making it possible to take granular measurements. The article deals with perspectives of the oil and gas industry for the current year. The perspectives are built with the consideration of the previous year’s indicators and include all the past disasters and the dynamics of their solution and the results for the society. The authors show wider implementation of drones used for abnormal emissions of hydrogen sulfide to carry out distant monitoring, observations, inspections and preventive maintenance, change tracking, methane management, emergency response and material processing. The article describes precision drilling which reduces the risk of accidents, oil spills, fires and increases rate of penetration. The authors present microwave hydraulic fracturing which can become the next significant achievement in the perspective development of the industry.

scholarly journals Iraqi Kurdistan Oil and Gas Sector: Iraqi and International Dimensions

2020 ◽  
pp. 58-67
Author(s):  
Qadir Aso Araz
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Regional Government ◽  
Legal Basis ◽  
Kurdistan Region ◽  
Gas Industry ◽  
Iraqi Kurdistan ◽  
International Aspects ◽  
Oil And Gas Sector

The article deals with the problem of the influence of the Iraqi Kurdistan oil and gas industry on the relations of the Kurdish autonomy with the central authority of Iraq. The international aspects of extraction and transportation of hydrocarbons from the territory of the Kurdistan Region are also analyzed. The legal basis for the functioning of the oil and gas complex in the region, the main differences between Erbil and Baghdad regarding the powers of the Kurdish regional government in the field of exploitation of natural resources of the autonomy is represented. It has been established that the independent activity of the Iraqi Kurdistan authorities in the development of the oil and gas industry in its territory, the wide involvement of foreign investment provided autonomy a significant source of income, which became the financial backing of Erbil in his political disputes with Baghdad. At the same time, in the question of the transportation of hydrocarbon, the landlocked Iraqi Kurdistan was critically dependent on Turkey, which greatly limits its range of options in its relations with Ankara. Excessive dependence of the Iraqi Kurdistan economy on hydrocarbon exports is one of the strategic challenges for Kurdish autonomy, but significant positive developments in this area are possible only in the long-term perspective. Keywords: Iraq, Iraqi Kurdistan, Kurdish autonomy, Turkey, oil and gas industry.

scholarly journals Evaluation of Oil and Gas Economy using Economics Profit Indicators and Prototype Macro VBA Excel

2021 ◽  
Vol 1 (1) ◽  
pp. 549-558
Author(s):  
Juwairiah Juwairiah ◽  
Didik Indarwanta ◽  
Frans Richard Kodong
Keyword(s):  
Economic Analysis ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Development Project ◽  
Economic Indicators ◽  
Gas Field ◽  
Gas Industry ◽  
Field Development ◽  
Oil And Gas Field ◽  
Oil And Gas Sector

The oil and gas sector is an important factor in sustainable development, so it is considered necessary to make serious changes in conducting economic analysis on the oil and gas business. Oil and gas industry activities consist of upstream activities, and downstream activities. Activities in these upstream and downstream operations have high risk, high costs and high technology, so the company continuously tries to reduce the importance of the adverse impact of these risks on the work environment and people. Thus, evaluating the factors that affect sustainable production in this sector becomes a necessity. In this research will be evaluated the economy of the oil and gas field using methods of economic indicators, among others; NPV, POT, ROR, where these factors are estimated in order to be able to estimate the prospects of the oil and gas field so that the decision that the field development project can be implemented or cannot be taken immediately. Implementation of oil and gas field economic evaluation in this study using Macro VBA Excel. From several methods of economic analysis obtained that the results of this study show high precision compared to other methods, in addition to the way of evaluation using the above economic indicators is very popular.

scholarly journals MECHANISMS AND INSTRUMENTS FOR ENSURING ECONOMIC SECURITY OF OIL AND PETROCHEMICAL ENTERPRISES

2020 ◽  
Vol 8 (1) ◽  
pp. 126-130
Author(s):  
Camila Weisman
Keyword(s):  
Crude Oil ◽  
Oil And Gas ◽  
Raw Materials ◽  
Oil Production ◽  
Oil And Gas Industry ◽  
Economic Security ◽  
Gas Industry ◽  
Important Direction ◽  
The Russian Federation ◽  
Oil And Gas Sector

The oil and gas industry remains for Russia the most important source of income, a strategic industry. According to official figures of the Ministry of Finance of the Russian Federation, income from the oil and gas sector, according to the results of 2019, is 40% of the total budget of the country. A large volume of crude oil and gas is exported from the country. The tax burden on raw materials reaches up to 60% of the initial cost, which makes oil production at new fields extremely unprofitable. The most important direction for the country is the transition from a strategy for the sale of crude oil products to refined ones, which have an additional cost. The article discusses the features of domestic oil production, analyzes the reasons for overpriced in comparison with competitive raw materials from other oil producing leader countries. The strategy of ensuring the economic security of the industry is noted, the main tools are listed and the mechanisms for ensuring the economic security of petrochemical industry enterprises are presented.

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