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
CHAPTER 2: OIL AND GAS PROCESS AND KEY CONCEPTS 3
CHAPTER 3: LEGAL FRAMEWORK 3
Typical Domestic Structure
A typical structure of a State’s oil and gas sector is depicted below:
The Ministry is typically responsible for inter alia, granting and revoking licences, initiating, developing and implementing an oil and gas policy, submitting draft legislation to parliament and negotiating and endorsing petroleum agreements. In most countries, there is usually a National Oil Company (NOC), that is responsible for managing the Government’s commercial interests in, and business aspects of the petroleum sector.
Some of the key roles of NOCs is to maximise value to its shareholders/stakeholders, managing the Government participation in petroleum activities and also investigating in new upstream, midstream and downstream ventures both locally and internationally. Cabinet roles could include approving the remuneration of the petroleum authority’s board members, approving the model PSA (on recommendation from the Minister) the opening an area for petroleum exploration, granting an exploration licence and granting a production licence.
African countries typically have a NOC and a separate independent regulatory authority. The NOC itself might have subsidiary or associated private companies, pipeline companies, logistic companies, a refinery company responsible for refining and petrochemical businesses and a pipeline company responsible for pipeline and storage ventures.
The below graphic indicates the number of different parties involved which will have an interest or be involved in any oil and gas industry.