Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
com
LOGO
LOGO
Contents
1 2
Introduction
History Of Libyan Oil Agreement EPSA 3 Model & Example
3
4
Conclusion Of EPSA
www.themegallery.com
LOGO
Introduction
NOC in Brief The national oil corporation (NOC) was established on 12 November 1970, under law No: 10/1970 to assume the responsibility of the oil sector operations. It was later reorganized under decision No: 10/1979 by the General secretariat of the General People's Congress, to undertake the realization of the objectives of the development plan in the areas of petroleum, supporting the national economy through increasing, developing and exploiting the oil reserves and operating and investing in those reserves, to realize optimum return. In carrying out its activities, NOC may enter in to participation agreements with other companies and corporations carrying out similar activities.
www.themegallery.com
LOGO
Introduction
Therefore, NOC is carrying out exploration and production operation through its own affiliated companies, or in participation with other companies under service contracts or any other kind of petroleum investment agreements. This is in addition to marketing operations of oil and gas, locally and abroad. For this purpose, NOC has its own fully owned companies which carry out exploration, development and production operations, in addition to local and international marketing companies. NOC also has participation agreements with specialized international companies. Such agreements have developed in to exploration and production sharing agreements, in accordance with the development of the international oil and gas industry, and international petroleum marketing. NOC owns refining, and oil and gas processing companies, operating refineries such as Zawia and Raslanuf refineries, ammonia, urea and methanol plants, the Raslanuf petrochemical complex and the gas processing plan. To establish petrochemical industry, anther stage of development of the ethylene plant has been completed, as well as the law and high density linear polyethylene plants.
www.themegallery.com
LOGO
Introduction
NOC also own national service companies witch carry out oil well drilling and work over operations, provide all drilling material and equipment, lay and maintain oil and gas pipe lines, build and maintain oil and gas storage tanks and carry out related technical and economic studies. They also provide the sector with other services, such as catering, procurement of materials and also equipment, training and employment of foreign employees. Also affiliated to NOC is petroleum researches center witch carries out research and technical studies related to the oil industry, conducts technical analysis and tests for the various stages of exploration and production of oil and petroleum products, performs quality control tests and issues certificates in this respect. It also evaluates patents licenses of exploration and the fees and forms related to oil operations and petroleum products.
www.themegallery.com
LOGO
Introduction
It publishes the studies carried out by the center in the publication of the center, as well as the local and international scientific publications. In the areas of man power development, NOC provides the oil industry with qualified nationals within a well planned scheme founded on a base of education and training institutions, for training and developing qualified man power in such professions as engineering, accounting and administration. Training out side the Great Jamahiriya is limited to those technical specializations witch are not available locally, to cope with the rapid development of the industry. Technical training is being carried out at the training centers and institution belonging to NOC, to develop specialized technicians for the operation and maintenance of industrial facilities and plants.
www.themegallery.com
LOGO
Introduction
Exploration and production activity: This activity carries out by NOC full owned companies and joint ventures companies and exploration production sharing companies, and which works under participation agreements or exploration production sharing agreements, and this activity covers wide on sure and off sure area of country. In this time we have (10) production companies and those capacity reached to (1.8 million barrel of oil per day) and (3 billion cubic feet of gas per day), probably this production rates increases at next five years due to multiple activities for production companies and several of participation and sharing contracts which signed with some of international companies.
www.themegallery.com
LOGO
Introduction
The exploration and development activity increases due to the increasing of numbers of rigs from (25 rig) to (60 rig) in middle 2008, thats indication for the level of activity to reach to the desired production rate. The technical studies and exploration operations were proven the Great Jamahiriya opportunities in investments so great, and also it has a special geographic location in Mediterranean which make it one of important oil markets in Europe, as well as it has its own huge oil and gas pipe line network, Great Jamahiriya also has multi facilities to export own products To Europe markets.
www.themegallery.com
LOGO
Introduction
The Investment in petroleum exploration production areas:
NOC has adopted a policy for encouraging foreign investment in oil & gas exploration through Bidding Rounds, for exploration areas spread over various onshore & offshore sites in Libya. The Bidding Rounds are open for qualified international oil companies willing to bear the risk of investing in oil & gas exploration. To day, NOC has conducted four consecutive bidding rounds beginning in September 2004 until December 2007 as follows: First Round January 2005, where 15 areas were offered & EPSA agreements were signed with 12 international oil companies. Second Round October 2005, where 26 areas were offered & EPSA agreements were signed with 15 international oil companies. Third Round December 2006, where 14 areas were offered & EPSA agreements were signed with 10 international companies. Fourth Round December 2007, where 7 areas were offered & EPSA agreements were signed with 6 international oil companies.
www.themegallery.com
LOGO
Introduction
National Oil Corporation
Organized To
EPSA
JOINT VENTUR ES
Full OWNE D
www.themegallery.com
LOGO
Introduction
JOWEF OIL TECHNOLOGY
FULL OWNED
RAS.LANOF OIL & GAS PROCESSING COMPANY
www.themegallery.com
LOGO
Introduction
WAHA OIL COMPANY ENI OIL COMPANY
OXY LIBYA
JOINT VENTURES
www.themegallery.com
LOGO
Introduction
EPSA SHELL COMPANY
WOODSID E
WINTERSH ALL
TOTAL E & P
PETROCAN ADA
www.themegallery.com
LOGO
LOGO
www.themegallery.com
LOGO
LOGO
LOGO
LOGO
www.themegallery.com
LOGO
www.themegallery.com
LOGO
LOGO
Diagram
1st Party 2nd Party
isSignature a Desi
Bonus
Minimum Exploration Commitment (100 % ) Development (50 % ) Operating Costs (100 - S) % First Income of Party=Production(100MS) % 1st Second Party NCF Calculations
EPSA 3 & 4
Development (50 % ) Operating Costs (S % ) Cost Oil = Production(MS) % Cost Oil Expenditures Profit oil= Cost oil Year expenditures
NO
Production Bonus
LOGO1st party
2nd party
Signature Bonus Minimum Exploration Commitment (100%)
Development (50%) Operating Costs (100 S)% First Income of First Party= Production*(100 S)%
Development (50%) Operating costs (S%) Cost Oil= Production*S% Cost Oil Expenditures YES Year Expenditures NO Take all Cost Oil
LOGO
"A" Factor
"R" Factor
"B" Factor
1 0.8 0.6
0.4
0.2 0 0 20 40 60 80 100 120
LOGO
The Fiscal Terms Between National Oil Company and E&P Companies in Libya
www.themegallery.com
LOGO
LOGO
1 10000
10,001 25,000
1
0.8
25,001 50,000
50,001 75,000 More than 75,000
0.6
0.4 0.2
www.themegallery.com
LOGO
www.themegallery.com
LOGO
www.themegallery.com
LOGO
LOGO
LOGO
LOGO
LOGO
www.themegallery.com
LOGO
www.themegallery.com
LOGO
152 MM STB 0 MMSTB 0 MMSCF 0 MMSCF 0 MM$ 422 MM$ 865 MM$
www.themegallery.com
LOGO
Evaluation Results
www.themegallery.com
LOGO
Gross Revenue (MM$) Signature & Production Bonus (MM$) Exploration + Appraisal Costs (MM$) Development Costs (MM$) Operating Cost (MM$) Net Profit (MM$) Present Value, Net PV (10%), MM$ Present Value, Net PV (5%), MM$ Rate Of Return (ROR %) Profit to Investment Ratio, PIR, ($/$)
9,137
5,636 0
2,536 0
965 0
--------
1.68
2.96
www.themegallery.com
LOGO
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2.77
0.00
1.39
1.39
5.68 51.55
0.00 37.01
4.83 10.44
0.85 4.10
LOGO
2nd Party 1st Party 1st Party Yearly Operation Yearly Operation Yearly Yearly Yearly Costs Total Costs Costs 2 Party 1 Party 1 Party Yearly Operation Yearly Operation Yearly Yearly Yearly Costs Total Costs Investment Investment Opex Cost Variable ($) Investment Investment Opex Cost Variable Fixed Fixed Opex Cost 2nd Party Costs ($) Opex Cost 2 Party Distribution of Revenues (MM$) (MM$) (MM$) ($/B) ($) Total Cost Costs (MM$) (MM$) (MM$) (MM$) ($/B) ($) 0.00 Total Cost0.00Costs 0 0 0 0 0 0 0.00 0 0 Bonuses ($/B) 2.5 2.5 0 0 12 12 0 0 (MM$) 7.5 7.5 0 0 12 12 0 0 0 0 0 16 0 0 0 0 0 0 16 0 12 12 0 0 27.5 27.5 0 0 12 12 0 0 2.5 2.5 0 65 0 0 12 12 0 0 65 0 12 12 0 0 0.00 0.00 0.00 0.00 Exploration + Appraisal ($/B) 00 0 12 12 0 0 12 7.5 7.5 0 62.5 62.5 12 0 0 22.5 22.5 33.46875 27375000 12 2737501 39.375 5.90625 2 16 16 0 7.5 7.5 48.36075 0 44895000 12 4489501 12 12 0 0 56.895 8.53425 2 27.5 27.5 0 0 0 12 56.895 8.5342512 0 0 0 48.36075 44895000 2.77 12 4489501 0.00 1.39 1.39 2 Development ($/B) 65 65 0 0 0 42157500 12 4215751 12 54.1575 8.12362512 0 0 0 46.033875 2 0 41.6655619 12 3701832 49.018308 7.352746 62.5 62.5 0 0 0 37018308.1 12 12 0 0 1 3 0 1 22 0 0 37.8297661 32505607.2 12 3250561 44.505607 6.675841 22.5 22.5 33.46875 27375000 12 27375012 39.375 5.90625 4 3 9 2 08 0 0 34.4615714 28543025.1 12 2854303 40.543025 6.081453 Operating ($/B) 7.5 7.5 48.36075 44895000 12 44895012 56.8950.85 8.53425 1 9 7 0.00 2 78 5.68 4.83 0 0 31.503975 25063500 12 2506351 37.0635 5.559525 2 0 0 48.36075 44895000 12 44895012 56.895 8.53425 0 0 28.9069231 22008144.8 12 2200815 34.008144 5.101221 1 3 7 8 73 0 0 46.033875 42157500 12 42157512 54.1575 8.123625 0 0 26.6264637 19325251.4 12 1932526 31.325251 4.698787 51.55 10.44 4.10 1 2 3 37.01 4 71 Net Profit ($/B) 0 0 41.66556191 37018308.13 12 28.969414 37018320 49.0183081 7.35274622 0 0 24.6240027 16969414.9 12 1696942 4.345412 3 7 7 9 25 0 0 22.8656508 14900765.7 12 1490077 26.900765 32505619 4.035114 0 0 37.82976614 32505607.23 12 44.5056072 6.67584108 9 5 8 7 86 0 0 21.3216501 13084294.3 12 1308430 25.084294 3.762644 0 0 of Crude 34.46157141 28543025.19 12 28543037 40.5430252 6.08145378 8 3 6 3 15 Distribution Oil 0 0 19.9658702 11489259.0 12 1148927 23.489259 3.523388 0 0 31.503975 25063500 12 25063512 37.0635 5.559525 1 6 1 1 86 nd 0 NCF(NOC) 0 18.7753660 10088665.8 12 1008867 22.088665 3.313299 Oil0Produced 0 Expenditure NCF(2 Party) T&R NOC+TR 1 9 8 9 88 28.90692311 22008144.83 12 22008157 34.0081448 5.10122173 (MMB) ) MMB) (MMB ( (MMB) 0 0 26.62646371 19325251.42 12 19325263 31.3252514 4.69878771 152.3 21.4 26.516969414.97 10.4 93.9 120.4 0 0 24.62400273 12 16969427 28.9694149 4.34541225 0 0 22.86565089 14900765.75 12 14900778 26.9007657 4.03511486 100.0% 14.1% 17.4% 6.8% 61.7% 79.1% 0 0 21.32165018 13084294.33 12 13084306 25.0842943 3.76264415 0 0 19.96587021 11489259.06 12 11489271 23.4892591 3.52338886 www.themegallery.com 0 0 18.77536601 10088665.89 12 10088678 22.0886659 3.31329988
LOGO
Allocated 1st Income Cost Oil to 1st Party (MM$) (MM$)
0 0 0 0 0 0 82.125 134.685 134.685 126.4725 111.054924 97.5168217 85.6290756 75.1905 66.0244345 57.9757543 50.9082449 44.7022972 39.2528829 34.4677772 30.2659977
-26 0 -54 0 -119 0 -181 0 -127 82 -9 217 79 313 163 405 218 468 269 525 315 577 355 623 392 665 424 702 452 734 476 762 498 787 516 809 532 829 www.themegallery.com
LOGO
Conclusion Of EPSA
Convention on the Exploration & Sharing production Agreement "EPSA" in the economies of the oil industry contracts that the Organization for this activity changed according to crises in the world markets for this commodity prices and this is what experience has shown historically, therefore, we find as a result of sudden rise in oil prices during the crisis of prices in the first 74-1973, the National Institution for oil on the basis of the powers granted to it by Law No. 24 of 1970 to adopt a new pattern of world oil conventions applicable to countries other productive what is known as the "Convention on the Exploration & Sharing production," "Exploration and Production Sharing Agreement" has been defined "EPSA B-1, "in the year 1974,since then, the National Institution for oil by the introduction of new patterns of these conventions, providing the Convention on second partake "EPSA-2 "1980" during the crisis of the high prices "Second, followed by the Convention on Third partake "EPSA-3" in 1988, and, finally, the Convention on fourth partake "EPSA-4 "in 2005.
www.themegallery.com
LOGO
Conclusion Of EPSA
In all types of these conventions that it had been contracted with foreign companies, as this is different contractual patterns In procedural terms, but, It has the same of all of philosophy and characteristics in terms of financial, technical and legal, they can be summarized as the operational phases are as follows: The exploration phase: abide by the foreign partner, "the second party," Financing of the exploration phase and holds all the risks resulting from which, the duration of exploration between 5 to 7 years. The foreign partner spending on exploration operations of production in the case of found on the discovery of commercial agreements for the first and second partake "EPSA. 1 and 2, in contrast to the conventions of the third and fourth partake "EPSA-3 and 4", which recovered in the second party its expenses on the operations of exploration, development and production in the case of found on the discovery of trading. The development stage: In the case of the achievement of the discovery of oil trading contribute the national institution in capital expenses "," CAPEX as a share in the rate of production
www.themegallery.com
LOGO
Conclusion Of EPSA
is the contribution of the institution agreed a loan-based foreign partner to a specific time period or, when an investigation or access to a certain amount of production for belonging to share with first "1 "EPSA conventions partake in the second, third and fourth .2, 3 and 4-EPSA" by the Foundation national oil financing for development operations, which are estimated at 50% is almost non-recoverable expenses, and with respect to the foreign partner, its expenses developmental recoverable at the start of production processes in accordance with the model III and IV of the Convention and partake "3 4 EPSA "does not include this requirement and the second of the first model conventions partake "1 and 2 EPSA. " The production stage: each of the Parties to pay its obligations of the first and second operational expenses "OPEX" both as its share of production agreed in advance for the agreements of the first and second partake "EPSA.1and2.In the third and fourth partake conventions "and 4,3" EPSA contribute each of the national institution foreign oil and partner in the financing of operational expenses to the extent their respective share of them in production, production are partake in proportion to allocate an initial agreed oil of the national institution the remainder of the production allocated to the foreign partner "to recover the foreign partner accumulated reimbursable expenses", defines the "oil-cost", "Cost Oil" identified during the direct negotiating process, "One-to-One,
www.themegallery.com
LOGO
Conclusion Of EPSA
Direct Negotiation" in the Conventions partake "3 third "EPSA, either in conventions in fourth conventions partake "4 "EPSA determined by the tender" during the rounds of the general declaration ", to equal the accrued value of the share" oil-cost "with accumulated operations expenses incurred by the foreign partner, including its share of the oil operations expenses" exploratory and development and operational "in that year deducted the value of crude the recipient of the foreign partner, according to the official price for raw materials after Libyan that distributes the surplus" oil, the "profit" Profit Oil "or sometimes called net oil" Net Oil ", according to an equation that take into account several scenarios and facts essential such as the changing in oil prices on world markets and expenses cumulative capital operational expenses, as well as quantities and rates of production, the variables of the equation to be determined by the National Institution for each region Oil contract basis, taking into account technical factors and the possibility of geological and presence of the region. The mechanism of that equation is provided for in article "12 "of the Convention partake fourth to be on the basis of the distribution of surplus" oil, the "profit" Profit Oil "or net oil" Net Oil ", this equation as following:
www.themegallery.com
www.themegallery.com
LOGO