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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.
This paper compares economics of a floating liquefied natural gas (FLNG) project with those of an onshore LNG plant and gas-to-wire (GTW) processes. Sensitivity analyses and tornado charts are used to evaluate the importance of various uncertain parameters associated with FLNG construction and operation. This study will be helpful for future considerations in using FLNG to convert offshore gas reservoirs previously considered stranded into economically viable resources. The results from this economic model can play a key role in the future of the natural gas industry and energy market in West Africa.
Wheatstone and Iago gas fields, part of the larger Wheatstone project, commenced production in June 2017. The foundation subsea system includes nine Wheatstone and Iago development wells tied back to a central Wheatstone platform (WP) for processing. Hydrocarbons then flow through an export pipeline to an onshore processing facility that includes two liquefied-natural-gas (LNG) trains and a domestic gas facility. The complete paper highlights some of the key learnings in well and reservoir surveillance analysis and optimization (SA&O) developed using data from early production. Chevron Australia's Wheatstone project is in the North West Shelf region offshore Australia (Figure 1).
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 United States remained Europe's top supplier of liquefied natural gas (LNG) in the first 3 months of 2021 as it continued to gain market share at the expense of Russia and Qatar, Europe's second- and third-largest sources of LNG, according to the EU Commission's latest European Gas Market Report. The US supplied 24% (4.2 Bcm) of the EU's overall LNG imports (17 Bcm in Q1 2021); Russia placed second at 21% (3.7 Bcm); and Qatar was third at 18% (3.1 Bcm), the EU Commission reported in early July. When compared to Q4 2020, the US picked up 2% market share from January to March this year, while Russia bested Qatar to become Europe's second-largest LNG supplier. Nigeria placed fourth, followed by Algeria and Trinidad and Tobago. A review of EU Commission reports dating back to 2019 reveals a steady quarter-to-quarter decline in Europe's LNG purchases while it also documents the growing rivalry between the US and Russia, Qatar's fall from dominance, and the emergence of the US as Europe's top LNG supplier starting Q4 2019.
The Biden administration is poised to issue new cybersecurity regulations for pipelines and liquefied natural gas facilities in the aftermath of the April hack that temporarily paralyzed the nation's biggest liquid fuel conduit. The rules, which could be released as early as this week by the Transportation Security Administration (TSA), are the second tranche by the agency since the attack on Colonial Pipeline. It represents a further move away from a system that until now had relied on self-reporting and other voluntary measures. "This Security Directive will apply to those pipeline systems that TSA has designated as critical to our nation's infrastructure and is urgently needed so as to better protect our critical pipeline infrastructure from cybersecurity threats," the Department of Homeland Security, which oversees the TSA, said in a statement that added that the directive would apply to liquefied natural gas facilities as well as pipelines. TSA officials were scheduled to brief the industry on the rules on 19 July, according to one person familiar with the matter who asked not to be identified discussing nonpublic information. Under the rules put in place in May, pipeline operators who fail to report cybersecurity attacks could be subject to fines and would also require pipeline companies to designate a representative to be available around the clock as a point of contact.
BP has entered a contract with Sempra Energy and Mexico's Infraestructura Energetica Nova for delivery of the company's first carbon-offset liquefied natural gas cargo. The cargo was delivered on 16 July to the Energia Costa Azul terminal, a joint venture between Sempra and IEnova, in Mexico's Baja California. The cargo will be sourced from BP's global LNG portfolio, and its estimated emissions will be offset using carbon credits sourced from a BP forest creation project in Mexico. "We are excited to advance our goal to lower GHG [greenhouse-gas] emission intensity at our LNG facilities," said Justin Bird, chief executive of Sempra LNG. "Sempra LNG continues to build a strong business portfolio focused on sustainability and the global energy transition."
Oil or gas wells produce a mixture of hydrocarbon gas, condensate, or oil; water with dissolved minerals, usually including a large amount of salt; other gases, including nitrogen, carbon dioxide (CO2), and possibly hydrogen sulfide (H2S); and solids, including sand from the reservoir, dirt, scale, and corrosion products from the tubing. For the hydrocarbons (gas or liquid) to be sold, they must be separated from the water and solids, measured, sold, and transported by pipeline, truck, rail, or ocean tanker to the user. Gas is usually restricted to pipeline transportation but can also be shipped in pressure vessels on ships, trucks, or railroad cars as compressed natural gas or converted to a liquid and sent as a liquefied natural gas (LNG). This chapter discusses the field processing required before oil and gas can be sold. The goal is to produce oil that meets the purchaser's specifications that define the maximum allowable water, salt, or other impurities. Similarly, the gas must be processed to meet purchaser's water vapor and hydrocarbon dewpoint specifications to limit condensation during transportation. The produced water must meet regulatory requirements for disposal in the ocean if the wells are offshore, reservoir requirements for injection into an underground reservoir to avoid plugging the reservoir, and technical requirements for other uses, such as feed to steam boilers in thermal-flood operations, or in special cases, for irrigation. The equipment between the wells and the pipeline, or other transportation system, is called an oilfield facility. An oilfield facility is different from a refinery or chemical plant in a number of ways.
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.
Shell, through Shell Eastern Trading, has signed a 5-year contract to supply PetroChina with carbon-neutral liquefied natural gas (LNG) cargos, using carbon credits to offset emissions across the LNG value chain. Shell will use offsets from its own portfolio of nature-based emission-reduction projects, the company said in announcing on 13 July that it had made its first delivery to PetroChina at the port of Dalian. Shell's first carbon-neutral LNG delivery to the Chinese mainland occurred a year ago under a contract signed on 22 June 2020 to deliver two cargos to CNOOC Gas & Power Group Co. Ltd. (CNOOC), a wholly owned subsidiary of China National Offshore Oil Corporation, according to Shell's website. Shell noted that CNOOC planned to auction both of its carbon-neutral LNG cargoes through the Shanghai Petroleum and Gas Exchange. Other credits may come from Shell-supported reforestation projects developed with the Qinghai Forestry Bureau in Qinghai and Xinjiang provinces in China.