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Guide to Understanding Drilling Contracts: What Is A Day Work Contract?

17th October 2019
What Is A Day Work Contract

Estimated reading time: 7 minutes   Masterclass On Understanding Drilling Contracts 2019   The upstream or E&P segment of the international oil and gas industry, is in all probability, the riskiest in terms of capital intensity, long payback periods, technological dependence and a host of legal and environmental compliance requirements. It is commonplace for entities seeking hydrocarbon reserves to offset this risk exposure through collective entities such as Joint Ventures (JV) and Joint Operating Agreement (JOA). However, the most important contracts for an operator is the drilling contract as it allocates all risks between the 2 parties. Other related contracts,...

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Understanding Petrophysics and Application to Carbonate and Fractured Reservoirs

15th October 2019
Integrated Petrophysics for Carbonate and Fractured Reservoirs

Estimated reading time: 6 minutes Integrated Petrophysics for Carbonate and Fractured Reservoirs   What is petrophysics? Petrophysics is defined as the study of the physical and chemical properties of rocks and their interactions with contained fluids. Petrophysics are used in studying reservoirs for the hydrobcarbon industry. More specifically, petrophysicists work with reservoir engineers and geoscientists to understand the rock properties of the reservoir. They work together to derive how pores in the subsurface are interconnected, controlling the accumulation and migration of hydrocarbons. Some of the key properties studied in petrophysics are lithology, porosity, water saturation, permeability and density. A key...

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6 Features of Production Sharing Contracts

15th October 2019
Features of Production Sharing Contracts

Estimated reading time: 5 minutes Regional Masterclass Production Sharing Contracts 2019   A PSC (Production Sharing Contract), or PSA (Production Sharing Agreement) was first introduced in Indonesia in 1960 for the agriculture sector before it was adopted for the petroleum industry. The success of the PSC was later picked up by other countries in the region such as Malaysia, Philippines, Libya, Egypt and more. Prior to the introduction of PSC contracts in Malaysia, the government passed the Petroleum Development Act of 1974 (PDA). This removed the concession system in the oil and gas industry – where oil and gas companies...

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Understanding Subsurface Pressures

8th October 2019
subsurface pressures

Estimated reading time: 3 minutes Understanding Sub-surface Pressures   Understanding subsurface pressures and their effects on the hydrocarbon system is a key input into developing successful exploration strategies, efficient well planning and ensuring the safe and effective exploration and exploitation of petroleum reservoirs.  Pressure data is needed in well planning and to define exploration risk and new opportunities identified through lateral drainage and hydrodynamic traps. Therefore, understanding the various mechanisms and processes that create high pressure provides a good understanding for accurate pressure prediction. It uses all available data including drilling data and seismic data to provide optimal well location...

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API 936 Refractory: Definitions Guide

4th October 2019
API 936 Refractory Inspection Code

Estimated reading time: 4 minutes API 936 Refractory Inspection Code   The API 936 Refractory Personnel certification is an industry-recognised certification for inspectors in the industry. It sets the standard for inspectors who are trained in refractory systems, as they hold the knowledge of API STD 936 Refractory Installation Quality Control Guidelines. Qualified refractory inspections have a strong knowledge and understanding of installation, inspection, testing and repair of refractory linings. API is the only national trade association representing all facets of the natural gas and oil industry. API Refractory Certification Program provides the industry with a means for central, independent, unbiased...

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Understanding Costings in EPC Contracts

1st October 2019
Understanding Contractor Costing in EPC Contracts

Estimated reading time: 4 minutes   Understanding Contractor Costing in EPC Contracts   As global demand for power generation continues to grow, there is a growing shift in both the pricing and costing methodologies employed by turnkey contractors. This is largely due to the client or owner wishing to ensure that all (or most) of the risk exposure is to be borne by the main contractor. In response to this, EPC contractors have adjusted the costings of their offerings in an attempt to have project budget to deal with these risks should they manifest. The shift in bargaining power in...

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The 4 Most Common Risk Mitigation Strategies

25th September 2019
The 4 Most Common Risk Mitigation Strategies

Estimated reading time: 5 minutes Project Risk Management   Project risk management is defined as the process of identifying, analyzing and then responding to any risk that arises over the life cycle of a project to help the project remain on track and meet its goal. Managing project risks is a process that includes risk identification and assessment, to prepare for a risk mitigation strategy. Risk assessment includes both the identification of potential risks with the evaluation of the potential impact of the risk. After which, it is just as crucial to prepare a risk mitigation plan to reduce the...

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4 Tips to Improve Well Integrity Management

24th September 2019
Drilling Completion Well Intervention

Estimated reading time: 4 minutes Well Integrity Management   Since 2009 to 2015, it has been estimated that poor well integrity has cost operators around the world more than US$75 billion. Factors such as the drop in oil prices and low margins are making operators sensitive to such risks. As a result, more emphasis is being placed on safety well integrity and regular maintenance. Well integrity management plays a key role in ensuring the safety levels of wells. Well integrity is widely defined in the industry by Norsok D-010: “Application of technical, operational and organizational solutions to reduce the risk...

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Abundance of oil discoveries in east and west Africa

20th September 2019
Petroleum Geology of Deepwater West & East Africa

Estimated reading time:  5 minutes Petroleum Geology of Deepwater West & East Africa   Currently, deepwater areas have become the hotspot of global oil and gas exploration. They contribute to the increase in oil and gas reserves and production. With Africa producing about 7% of the world’s oil and gas supply, the east and west Africa regions presents a huge potential for international E&P companies to expand into region. The petroleum geology of the region consists of a range of basins that include intra-cratonic sags, epicratonic embayments and basins that form part of the rift-drift sequence caused by the post-Triassic break...

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The Haze Crisis and Implications on the Industry

18th September 2019
burning of forests haze peat

Estimated reading time: 6 minutes The Haze Crisis and Implications On the Industry   Large burning of forests in Indonesia has contributed to the haze currently happening in South East Asia. The forest fires that are occurring on carbon-rich peat soil contributes to the rise of harmful particles in the air, affecting the air quality in the region. Fires and the resulting haze have caused the region significant economic, social and environmental costs.   What’s Causing the Haze? According to the National Disaster Mitigation Agency (BNPB) in Indonesia, 328,724 hectares of land was burnt from January to August 2019 alone....

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