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Equal to P1. Glossary of Petroleum Resources Management System - June 2018 (revised version) The process (and associated costs) of returning part or all of a project to a safe and environmentally compliant condition when operations cease. Examples include, but are not limited to, the removal of surface facilities, wellbore plugging procedures, and environmental remediation. In some instances, there may be salvage value associated with the equipment removed from the project. ADR costs are presumed to be without consideration of any salvage value, unless presented as "ADR net of salvage." Arithmetic summation of incremental categories may yield different results from probabilistic aggregation of distributions. Method used in resources estimation in the exploration and early development stages (including improved recovery projects) when direct measurement is limited. Based on evaluator's assessment of similarities of the analogous reservoir(s) together with the development plan.
Tellurian has finalized 10-year liquefied natural gas (LNG) sale and purchase agreements (SPAs) with Shell for 3 mtpa from the Driftwood LNG project in Louisiana. The SPAs are on a free on board (FOB) basis and indexed to a combination of two indices: the Japan Korea Marker and the Dutch Title Transfer Facility, each netted back for transportation charges. The agreements mark the third deal that Tellurian has finalized in 10 weeks, totaling 9 mtpa and nearly all the capacity of Driftwood LNG's first two plants. In June, Tellurian signed a similar deal with energy trader Vitol. A month prior, another 10-year, 3-mtpa deal was struck with Guvnor Singapore.
The 19th OPEC and non-OPEC ministerial meeting, known collectively as OPEC, has agreed to end its historic production cuts after determining that global crude demand has shown "clear signs of improvement and OECD stocks falling, as the economic recovery continued in most parts of the world." Sunday's agreement will see the gradual end to the production cuts that were made last year in an unprecedented response to excess supply that resulted from the onset of the COVID-19 pandemic. Thanks to a number of vaccine programs taking shape worldwide, OPEC said now is the time to erase the cuts by throttling production up by 400,000 B/D per month to the end of 2022. The gradual increase is considered a cautious move by many analysts, one meant to temper crude markets and expectations as a full global economic recovery remains unrealized amid the spread of new virus variants. Analysts have also noted that the deal has soothed tensions within the group, most notably between Saudi Arabia and the UAE, which had lobbied hard for an increase in its baseline production figure that effectively sets its quota limit.
Russian oil major Lukoil agreed to acquire the 50% operator interest held by Houston-based Fieldwood Energy in Mexico's Area 4 offshore shallow-water project for $435 million plus 2021 expenditures incurred up to the closing date of the transaction, Lukoil announced. Fieldwood Energy and PetroBAL, the oil and gas subsidiary of Mexican conglomerate Grupo Bal Sa De CV, won rights in October 2015 to develop Block 4 under a production sharing agreement (PSA). The partners' lone bid in Mexico's second licensing round granted 74% of the pretax profit to the Mexican government but without any increases to the minimum local work program requirements. In August 2020, Fieldwood filed for Chapter 11 bankruptcy protection and in June won approval of its plan to restructure $1.8 billion of debt and invest an estimated $7 billion in environmental cleanup, according to Bloomberg. The Chapter 11 plan was approved in late June after 5 days of virtual testimony and argument in the US Bankruptcy Court for the Southern District of Texas which highlighted such issues as the legal ins and outs of plugging oil wells that are no longer in use, Bloomberg reported.
US liquefied natural gas (LNG) developer Tellurian terminated a stock-and-LNG-purchase agreement with France's TotalEnergies related to Tellurian's proposed Driftwood LNG export plant in Louisiana. Tellurian said in its 8-K filing with the US Securities and Exchange Commission that it had ended the agreements "because they are not consistent with the commercial agreements that Driftwood LNG ... has reached with other counterparties." The other counterparties include commodity traders Vitol and Gunvor Group, with whom Tellurian signed 10-year agreements in May and June to sell 3 mtpa of LNG. Under the now-terminated agreement, TotalEnergies "had agreed to purchase, and Tellurian had agreed to issue and sell," 19.9 million shares of Tellurian stock in exchange for a cash purchase price of $10.064 per share, with an option to buy as many as 1.5 million mtpa of LNG, subject to the satisfaction of certain closing conditions. One of those closing conditions, according to Reuters, was Tellurian's making a final investment decision to build the liquefaction plant within 24 months of a 10 July 2019 agreement.
Petroleum has been an internationally traded commodity since the late 1800s. In the early 1900s, Standard Oil Company of New Jersey held a near-monopoly on domestic oil supply and price. Specific judicial and legislative action by the United States government caused this monopoly to break up, and various large, integrated oil companies were formed, which participated in all petroleum industry segments from exploration to marketing. These major companies sought mineral development opportunities both domestically and abroad. At the same time, European oil companies also sought to capitalize on mineral development opportunities beyond their borders.
The co-owners of the Terra Nova project offshore Newfoundland have reached an agreement in principle to restructure the project ownership and provide short-term funding toward continuing the development of the Asset Life Extension Project, with the intent to move to a sanction decision in the fall. A subset of owners will increase their ownership of the project for consideration payable from the other owners. Full details of the ownership swap were not disclosed, however, as a result, operator Suncor's ownership will increase to 48% from around 38%. The agreement is subject to finalized terms and approval from all parties, including board of director approval where appropriate, and is contingent upon the previously disclosed royalty and financial support from the Government of Newfoundland and Labrador. "Over the past year, Suncor has worked diligently with all stakeholders to determine a path forward for Terra Nova," said Mark Little, Suncor president and chief executive officer.
Tellurian has finalized a liquefied natural gas (LNG) sales-and-purchase agreement with Vitol for 3 mtpa on a free on board basis at Driftwood LNG for a 10-year period. The deal follows a similar 10-year, 3-mtpa agreement Tellurian entered with commodity trader Gunvor Group announced about 1 week ago. Each deal is worth about $12 billion in revenue over the contract period. Driftwood LNG is a 27.6-mtpa project in Louisiana slated to begin exports during the first quarter of 2022. Previously, Tellurian's only firm commercial deal tied to Driftwood LNG had been a 2019 agreement with France's Total.
The Shell Robert Training and Conference Center in Louisiana has established a new partnership with Maersk Training to deliver training to the Gulf of Mexico offshore workforce. The agreement will combine the infrastructure and training set-up at the Shell Robert Center with Maersk Training's experienced instructors and course-design methodology. Partnering with Shell represents significant growth for Maersk Training in the Americas. Using its history and experience, the company will deliver a full suite of safety, pool survival, well control, and process training in the region as it does across several of its international hubs. Matthew Roberts, Maersk Training's operations manager, said, "This facility takes us to a new level in what we can offer to the market. The Robert Center has a proud history, and we look forward to building on that tradition. Our ambition is to integrate our high-end simulators with basic safety and survival training to create a truly holistic and fully integrated learning experience for our customers from beginning to end. In collaborating with Shell, we look forward to learning and developing future opportunities together."
Abstract There are occasions when one might want to use results from one simulator as input to another simulator, for example, when preparing data for a leak sensitivity study where data from an offline simulator is used to synthesize measurement data for a real time model. Alternatively, one might want to compare results between different simulators, as with the PSIG test cases. Clearly, ensuring the pipeline parameters and fluid parameters are the same in both simulators is an essential step in this process. However, nuances and differences in modelling philosophies can lead to differences in the results that can be difficult to explain. In this paper we present an incremental approach to ensuring that results between simulators match to within desired tolerances and, where they do not match, provide insight to where the source of the differences lie. The key parameters used to measure the agreement, or otherwise, between the simulators are explained and the effect of the different modeling parameters investigated. To demonstrate, the approach is applied to an offline single-phase simulator, an offline multiphase simulator, a spreadsheet model and a Real Time Transient Model. In the example presented the various steps in the process are described and differences in modelling approaches are highlighted. Finally, we demonstrate that, for the example used, excellent agreement between the different simulators can be achieved. Motivation and Overview The reasons for wanting to ensure that different simulators agree are many and varied. For example, we might want to generate data using one simulator for consumption by another simulator, such as when undertaking a leak sensitivity study. Another example would be independent verification of a flow assurance study.