Marginal Field: Farm out Agreement and Field Development Strategies

Course Description

New entrants into upstream oil and gas business particularly marginal field license holders are faced with early stage challenges of Low Oil and gas prices and price volatilities, poor seismic data coverage, small recoverable reserves, difficult terrain, reservoir pressure, distance to existing infrastructure, strict regulations and fiscal regime, high hurdle rates and lack of collaboration between licensees. Anyone or a combination of these factors could hinder the development of marginal fields.

Conventional business model for oil and gas production is unlikely to work for marginal field development. Therefore, profitable harness of a marginal field resources requires entrepreneurial skill coupled with fresh ideal, technology optimization and business model innovations.

This course is designed for new entrants particularly the marginal field operators to explore out-of-the-box strategies required from award to first oil and also ensure sustainable and profitable production from the newly awarded marginal fields.

Participant will gain knowledge in the following area:

  • Understand the regulatory frame work for marginal field operations
  • Obtain necessary permits and approvals from regulatory authorities
  • Negotiation of Farm-out Agreement and associated agreements necessary to operate Marginal Field
  • Prepare an optimized Field Development Plan
  • Develop sustainable community relation strategies
  • Collaboration and synergize with other Marginal Field Operators or IOCs
  • Put in place Rig, Facilities and other Procurement contracts
  • Explore different technology and field development option

Who Should Attend?

  • Technical and commercial Leads
  • procurement officers
  • Business Development Managers
  • C-Suite Executives.

Education introduction

Module 1: Farm out Agreement

  • Definition and Interpretation
  • Representatives
  • Farm-Out Overview
  • Re-Definition of Farm-Out Area
  • Financial Obligations
  • Rights and Obligations of the Parties
  • Operations
  • Health and Environmental Standards
  • Representations, Warranties and Disclaimers
  • Natural Gas
  • Evacuation of Farmeeā€™s Petroleum
  • Government Participation
  • Confidentiality
  • Abandonment Security
  • Liability and Indemnity
  • Insurance
  • Applicable Law and Dispute Resolution
  • Assignment of Interest
  • Termination
  • Notices
  • Relationship of the Parties
  • Force Majeure
  • General Provisions

Module 2: Field Development Strategies

  • Environmental Impact Assessment (EIA)
  • Geoinformatics, Geological, Geophysical Petrophysical studies
  • Field Development Plan
  • Drilling
    • Well design and construction
    • Rig Contract
    • Location preparation
    • Rig Move
    • Drilling and Well services
  • Pipeline
  • Production, Processing and Storage facilities
  • Crude Evacuation Strategy
  • Crude handling Agreement (CHA)
  • Gas Sale Agreement (GSA}
  • Class Highlight:
    • Sample of Farm agreements to be shared and discussed in class
    • Crude Handling Agreement
    • Sample Field Development Plan to be shared in class

Instructor: Esan Mascot Ogunjemiyo, ACS MSCI

Duration: 3 Days or 24 Hours