MARKET DEVELOPMENTS – GLOBAL
Alaya Legal presents its Eleventh Issue of the Oil & Gas E-Zine. Web links are provided for easy access to reference materials. The contents are presented to provide comprehensive updates in a systematic manner from a legal perspective.
Reference Material
- Categories of proven oil and natural gas reserves across the globe.
- Overview of Upstream, Midstream and Downstream sectors in the Oil & Natural Gas Industry.
OneSubsea Successfully Commissions Subsea Boosting Systems in Gulf of Mexico
April 4, 2016
OneSubsea, a Schlumberger company, successfully commissioned subsea boosting systems in ultra-deep waters of the Gulf of Mexico. Installed at a depth of 7,000 feet, the system consists of three retrievable single-phase pumps of 3.0 MW each and supports cost-effective reservoir recovery.
Lula Alto Oilfield Commences Production
April 12, 2016
The Lula Alto pre-salt oilfield, part of Sinopec Corporation Brazil’s PB project, commenced production. Located within the BM-S-11 block of the Santos Basin, the field produces approximately 30,000 barrels of crude oil and one million cubic meters of natural gas daily.
ExxonMobil Begins Production at Julia Oil Field
April 19, 2016
ExxonMobil announced commencement of oil production at the Julia Field in the Gulf of Mexico. The field, discovered in 2007, is located in the ultra-deep-water Walker Ridge area and is jointly owned by ExxonMobil and Statoil Gulf of Mexico LLC.
ExxonMobil Starts Production at Point Thomson
April 22, 2016
ExxonMobil commenced production operations at its Point Thomson project in Alaska’s North Slope. The facility is designed to initially produce 5,000 barrels per day of condensate and 100 million cubic feet of recycled gas daily.
Schlumberger to Acquire Coiled Tubing Drilling Assets
April 27, 2016
Schlumberger entered into an agreement with Xtreme Drilling and Coil Services Corporation to acquire coiled tubing drilling and coiled tubing units located in Saudi Arabia and the United States.
ONGC Executes Under Balance Drilling for the First Time in India
May 12, 2016
ONGC successfully implemented Under Balance Drilling (UBD) operations at the Heera and Mumbai High fields. The technology minimizes reservoir damage and enables real-time monitoring of reservoir performance.
BP Launches Major Water Injection Project at Thunder Horse Platform
May 25, 2016
BP initiated a major water injection project at its Thunder Horse platform in the Gulf of Mexico. The project is expected to enhance oil and gas recovery and add approximately 65 million barrels of oil equivalent over time.
Sinopec Wins Brunei Diesel Hydrogenation Project
May 24, 2016
Sinopec’s proprietary diesel hydrogenation technology secured a major project in Brunei. The technology offers lower energy consumption, reduced investment costs, and stable long-term operation.
Reliance Sells Interest in Gulf Africa Petroleum Corporation to Total
May 31, 2016
Reliance Exploration & Production DMCC entered into agreements with Total for the sale of its stake in Gulf Africa Petroleum Corporation, a major petroleum products business operating across East Africa.
GAIL Begins New Exploration Well in Gujarat
May 31, 2016
GAIL India commenced drilling of its second exploratory well in Anand District, Gujarat, targeting a depth of 2,200 meters within the Cambay Basin.
ONGC Videsh Signs MoU with SOCAR Trading
June 1, 2016
ONGC Videsh Limited and SOCAR Trading signed an MoU to explore joint marketing opportunities for ONGC Videsh’s crude oil portfolio and improve price realization through strategic cooperation.
Indian Consortium Acquires Stake in Vankorneft
June 17, 2016
Oil India Limited, Indian Oil Corporation Limited, and Bharat PetroResources Limited signed definitive agreements to acquire up to 23.9% stake in JSC Vankorneft from Rosneft.
GAIL Places Orders for Urja Ganga Pipeline Project
June 22, 2016
GAIL awarded contracts for 341 kilometers of line pipes for the Phulpur–Haldia/Dhamra Natural Gas Pipeline, a major infrastructure project intended to serve as Eastern India’s energy corridor.
Chevron Approves Tengiz Expansion Project
July 5, 2016
Chevron approved the Future Growth and Wellhead Pressure Management Project in Kazakhstan, expected to increase crude oil production by approximately 260,000 barrels per day.
Chevron and JOVO Sign LNG Agreement
July 20, 2016
Chevron signed a Key Terms Agreement with JOVO for LNG supply, under which JOVO is expected to receive up to 0.5 million metric tons of LNG annually over five years.
REGULATORY & JUDICIAL DEVELOPMENT – INDIA
Government Launches Pradhan Mantri Ujjwala Yojana
May 6, 2016
The Government of India launched Pradhan Mantri Ujjwala Yojana to provide LPG connections to five crore below-poverty-line households between 2016 and 2019.
Excise Duty Exemption for Crude Oil Production
June 13, 2016
The Government exempted excise duty on crude oil production from several fields operating under Production Sharing Contracts, reducing the tax burden on eligible producers.
FEATURE
Off-Specification Gas Under Gas Sales Agreement (GSA)
Off-specification gas refers to gas delivered by a seller that does not meet the agreed quality specifications under a Gas Sales Agreement or applicable law.
Common causes include excessive levels of carbon dioxide, nitrogen, sulphur, oxygen, water, and other impurities that reduce the commercial value and usability of natural gas.
A Gas Sales Agreement typically specifies:
- Methane content requirements
- Calorific value limits
- Maximum impurity levels
- Delivery temperature requirements
- Wobbe Index standards
- Relative density specifications
The article discusses the rights and obligations of both buyers and sellers when off-specification gas is delivered, including notification requirements, indemnities, liability caps, and remedial measures.
The seller has a continuing duty to act as a reasonable and prudent operator and take all necessary steps to remedy off-specification gas issues.
STOP PRESS
OIL and ONGC Pay Differential Royalty to Assam Government
August 4, 2016
Oil India Limited and ONGC made differential royalty payments to the Government of Assam for crude oil production, marking the first direct payment of such royalty obligations by upstream public sector oil companies.
DISCLAIMER
The information contained in this private circulation is not legal advice and should not be relied upon as such.
The information is sourced from the public domain and is intended solely for private and non-commercial purposes.
No representation is made regarding the accuracy, completeness, or reliability of the information provided.
This disclaimer shall be governed by and construed in accordance with the laws of India, and any disputes shall be subject to the exclusive jurisdiction of Indian courts.
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Doc ID: 8O&G16
