business developments, ji europe evaluation possibilities belief there is a spectrum of tools that...
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BUSINESS DEVELOPMENTS, JI EUROPE
Evaluation Possibilities
Belief
There is a spectrum of tools that can be employed to address commercial barriers. There is a spectrum of how severely they can be implemented.
Objective, systematic analysis of the problem areas, together with existing anecdotal information will help guide where in these spectra we should be focusing ourefforts.
A foundation of objective and systematic analysis will be critical in winning the hearts and minds of both Industry and Government.
Evaluation Objectives
Quantify materiality
Characterize problem areas
BUSINESS DEVELOPMENTS, JI EUROPE
Correlation Between Time to Development and Asset Churn
(Years)
Discovery to
development
sanction
3rd Dimension
Size of field
Size of partner change
Hydrocarbon type
Gulf of Mexico
No times partner change
and/or No times Operator change
BUSINESS DEVELOPMENTS, JI EUROPE
Correlation Between Time to Development and No of Partners
(Years)
Discovery to
development
sanction
3rd Dimension
Size of field
Hydrocarbon type
Gulf of Mexico
No of partners at development sanction
BUSINESS DEVELOPMENTS, JI EUROPE
Existing Commercial Barriers
Barriers to development for fields discovered up to 1998 but no development sanction by end 2001.
1. Technology / reserves
2. Await appraisal
3. Await development selection
4. Await infrastructure ullage
5. TPOSA terms
6. TPOSA tariff
7. Unitisation terms
8. JOA/UOA terms
9. Other. 1. 2. 3. 4. 5. 6. 7. 8. 9.
No assets
and/or
Reserves
BUSINESS DEVELOPMENTS, JI EUROPE
Comparison of Commercial Practice
(UK, Norway, Germany, Canada, Australia)
Legislated Voluntary Practiced Describe
Standard contracts - A&D N N -- JOA Y - -- UOA N N- Unitisation N N -- Transport N Y Y- Processing N Y Y
Published TPOSA terms N Y NPreemption excluded Y - -Standard process for resolution Y Y Y
BUSINESS DEVELOPMENTS, JI EUROPE
Next Steps
1. Agree which (if any) evaluation is required.
2. Agree sponsors, industry (and DTI).
3. Sponsors to engage analysts (e.g. Woodmac) and make final proposal to Workgroup early Sept.
4. Results end Oct.