Our Services
What is Concession used in Oil & Gas Specific Terms?
Asked 1 month, 3 weeks ago | Viewed 45times
   Ask Question
0

How does the concept of "concession" in the oil and gas industry differ from its general usage in other sectors, particularly in terms of its legal framework, ownership rights, and the interplay between the government and private entities involved in resource extraction?

 concession
asked July 28, 2024, 9:40 a.m.
20
drolend
0 0 gold badges 0 silver badges 0 bronze badges
comment question
1 Answer(s)
0

In the Oil & Gas industry, "concession" refers to a contractual agreement between a government and an oil and gas company, granting the company the right to explore for, develop, and produce oil and gas within a specific geographical area.

Here's a breakdown:

  • Government: The granting authority, typically a national or regional government, holds the rights to the oil and gas resources within its territory.
  • Oil and Gas Company: The entity granted the rights to explore, develop, and produce.
  • Geographical Area: A specific area defined by the concession agreement, often with defined boundaries and geological characteristics.
  • Rights: The concession typically grants the company various rights, including:
    • Exploration: Conducting seismic surveys, drilling exploratory wells, and gathering geological data.
    • Development: Building infrastructure (pipelines, processing facilities, etc.) and preparing for production.
    • Production: Extracting and selling oil and gas from the designated area.
  • Terms and Conditions: The concession agreement outlines specific terms and conditions, including:
    • Duration: The length of time the concession agreement is valid.
    • Royalty: A percentage of the oil and gas produced that must be paid to the government.
    • Taxes: Other taxes and fees that may be levied.
    • Environmental Regulations: Standards for environmental protection and responsible operations.

Important Notes:

  • Concessions are a primary legal framework for oil and gas exploration and production worldwide.
  • Terms and conditions vary significantly between countries and regions.
  • Concessions can be controversial, with concerns regarding environmental impacts, revenue sharing, and national sovereignty.

Example:

A company receives a concession to explore for oil and gas in a specific area of a country. The concession agreement grants the company the right to explore for 10 years, develop for 5 years, and produce for 25 years. The company must pay a 10% royalty to the government on all oil and gas produced.

By understanding the concept of "concession" in the Oil & Gas industry, you gain insight into the complex legal and regulatory framework governing oil and gas exploration and production activities worldwide.

answer July 28, 2024, 9:40 a.m.
35
valdout39
0 0 gold badges 0 silver badges 0 {% trans "bronze badges" }
comment Answer

Top viewed

How to calculate piping diameter and thikness according to ASME B31.3 Process Piping Design ?
What is Conductivity (fracture flow) used in Reservoir Engineering?
What is probability? What is consequence?
How to use Monte Carlo similation using python to similate Project Risks?
What is a neutron?

Tags Cloud

Management Statistics D&A electrical 220V three-phase Construction Control Estimation Estimate Pre-Tender Uplift bailer drilling neutron electron proton atome Log-Inject-Log Specific Terms Assets Technical Materials Procurement Considerations Guide scheduling planning Vibroseis Liner Slotted Layout Pre-Qualifications (QA/QC) Quality Assurance Inspection In-Process Project Planning Scheduling Task Force Engineering Reservoir Impeller Quality Control QA/QC Storage Drilling Completion retriever Concession element Temperature Hydrophobic General Regulatory Audit Compliance Backward tubing Diameter coiled Processing Clintoptolite logging Heading Well Emulsion Invert Instrument Hanger Plan Baseline Risk Neutralization (processing) Triple Casing MIT-IA Float ("FF") Systems Programmer Optimistic Chart Responsibility Activation Resource Software (subsea) elevators Scheduled Finish Phasing Conformance System Submersible Electrical Identification Bar-Vent perforating (facilities) Pitot Racking WIMS Lapse Factor Gantt E&A Tracer Facilities Production (injector) Density Staff Training Development Competency In-House Static Items Off-the-Shelf meter displacement Policy Manual Culture Underbalance Sponsor Staffing Effort Activity Depth Vertical Valuation slick ("LSD") Start Level Leaders Manpower Industry consequence probability hazard lift) test) (well SRBC Computer Modeling (seismic) Immature time-lag Subcontract BATNA Ground Carrier Triplex Communication Nonverbal Compressor Awareness Safety Benefits annulus indexation Outil GERT Vapor Oil-In-Place Indicators ("KPI") Performance GPR process Displacement Valve Scope reservoir Percentage Barite Vendor Contract Award Gathering (mud) Pressure Lift-Off Subproject Relationship Fluid Shoot Pulse Curvature Individual Migration Fines Detailed Python Monte-Carlo risks simulation visualize analyze project Phased safety clamp Source Evaluation aliphatic compounds Particle connection vapor evaporation compression Leader Tap depth control perforation Bridging Exchange Capacity Cation Concurrent Delays Appraisal radioactivity LPG Specification Current budget Digital Simulation Penetration Net-Back Tetrad Trade-off Schedule Status Curve Effect Belt Electric Logging Offsite Fabrication Shearing Matrix Contractor Prime Network Path, Emulsifier Dispute ECC Motivating Rewards Personal FLC Expenditures Actual Skirt access opening botanical pesticide Qualifications Formaldehyde pumping EAP Element Packing Discontinuous Fanning Equation factor) friction Architecture Cement Micro CL Acceptance Letter Functional Emergency Response Organization CM Water wet Requirements Cased Perforated Managed RWO A2/O OWC Commitment Agreement Information Flow Nipple Drawing Logic Semi-Time-Scaled Performing Communicating Groups organophosphates Blanking Microorganisms SDV V-door Junk Fourier Description (corrosion) Passivation Test Testing Risks Threshold Velocity World Product Review DFIT Brackish Deox Phase Programme flow Conductivity fracture Qualification service colloidal Insulation Painting Éthique Mobilize Gas Oil Spacing basket accumulator Hydrofluoric pipeline ferrites black-powder Potential Magnitude Order SOC Capability Fault PDP Medium Probabilité erreur intégrité Gestion actifs Drill Doghouse IAxOA CMIT Configuration Procedures Verification Brainstorming Plateau Contractual Legal tubular goods Known-Unknown Incident Spending Investigation Limit Reporting ("SSD") Sulfide/Sulfate Zinc Constraint

Tags

-->-->
Back