-
CHAPTER 1: INTRODUCTION AND BACKGROUND TO THE OIL AND GAS INDUSTRY 4
In this section, we broadly discuss the following background concepts to the oil and gas industry: 1.1 Introduction to Oil and Gas hydrocarbon system elements and the formation of oil and gas; exploration, development and production activities including the types of drilling shale gas basics 1.2 Sector organisation 1.3 Market and Pricing 1.4 Oil and Gas in Africa History and overview Future developments
-
INTRODUCTION TO OIL AND GAS 30 minLecture1.1
-
SECTOR ORGANISATION 30 minLecture1.2
-
MARKET AND PRICING 30 minLecture1.3
-
OIL AND GAS IN AFRICA 30 minLecture1.4
-
-
CHAPTER 2: OIL AND GAS PROCESS AND KEY CONCEPTS 3
-
OIL VS GAS – TECHNICAL EXPLANATION 30 minLecture2.1
-
OVERVIEW OF OIL AND GAS INDUSTRY PHASES 30 minLecture2.2
-
CONTRACTUAL STRUCTURE 30 minLecture2.3
-
-
CHAPTER 3: LEGAL FRAMEWORK 3
-
RESOURCE OWNERSHIP AND LICENSING 30 minLecture3.1
-
UPSTREAM CONTRACTS – TYPES OF COMMERCIAL AGREEMENTS 30 minLecture3.2
-
UPSTREAM CONTRACTS: TYPES OF HOST GOVERNMENT CONTRACTS 30 minLecture3.3
-
OVERVIEW OF OIL AND GAS INDUSTRY PHASES
Upstream, Midstream and Downstream
Any project for the sale of gas must look at the sale and transport of gas and must be considered within the wider context of overall gas commercialisation project to ensure the link-up of rights, obligations, liabilities and revenue receipts.
Upstream oil and gas operations identify the deposits, drill wells and recover raw materials from underground; in a number of different ways. This sector also includes field development and production. The midstream operations provide the link between the upstream and downstream entities, with a focus on resource transportation and storage, such as pipelines and gathering systems. In order to do this, the parties will enter into a transport agreement which, in the gas sector, is called a Gas Transport Agreement (GTA). Downstream operations include the refining and marketing, which are focused on creating the end, usable products such as gasoline, fuel oils, and petroleum-based products.
In respect of the GTA, a pipeline transport system is the mechanism through which gas is transported. The pipeline transport system is a series of interconnected pipelines to the customer market. The owner of the pipeline usually charges for the transport of gas by the pipeline. The allocation of the pipeline usage cost will be dependent on the form of transport model used in respect of the pipeline. The model could take the form of dedicated customer owned pipeline or a merchant tolling model where the offtake customer pays the associated service charge. Issues that may arise where there are multiple shippers using the same pipeline but buying their gas from different suppliers, concern issues of co-mingling from an ownership and specification perspective.