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First International O&G Contracts Course for WBC

It was a week of firsts: WBC’s first International O&G Contracts course, delivered in Lagos and Mohammad Al-Ramahi delivering his first course as a WBC associate. The International O&G Contracts course had attendees from oil companies and engineering service companies. The course ran in March at excellent facilities provided by Saipem. [Read more…]

Training for Energy Logistics and Kelkan Contracting in Sulaymaniyah

Staff of Energy Logistics and Kelkan Contracting took part in the “Bidding to Win” training course in Sulaymaniyah at the end of February.  Warren Business Consulting’s associate Alain Desiderato presented the established sales methodology which is applicable throughout the sales cycle, from lead identification to bidding and negotiation. [Read more…]

The Strategic Importance of Farm Outs – Part 3

The previous articles in this series* highlighted the strategic reasons for farm out transactions and some common terms found in farm out agreements.  This article looks in more detail at some of the fundamental legal and contractual issues that should be considered when drafting and negotiating farm out agreements. [* by Richard Metcalf and Vivek Katyal of Norton Rose*, the international law firm]

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The Strategic Importance of Farm Outs – Part 2

Farm out agreements are amongst the most common and strategically important agreements in oil and gas.  For the explorer they can represent an opportunity to create value from a promising prospect, for others they may play a critical role in portfolio optimisation.

There are many different types of farm out agreement but perhaps the most common covers the exchange of an interest in a licence or contract for the assumption of an obligation.  This almost always happens at the exploration stage and the obligation assumed is usually a commitment to the government to shoot seismic or to drill a well.

[Read more…]

The Strategic Importance of Farm Outs – Part 1

For small and big oil companies alike, farm out deals play a significant role in the oil and gas business.  For some small companies farm outs present an opportunity to add value to an exciting exploration prospect.  For larger companies, these deals play a critical role in portfolio management.

Whatever your perspective, farm out agreements are amongst the most common in oil and gas, coming second only to granting instruments.  All investors and companies will want to make sure they understand how these agreements work.

[Read more…]

Kurdistan Region of Iraq – Land of Opportunity

With over 50B barrels of oil and gas (according to the U.S. Geological Society), under explored acreage and a success rate of over 70%, it is no wonder that the Kurdistan Region of Iraq is attracting oil and gas investor interest.  Indeed the region has less than 2% of all wells drilled in the North Sea.

Add in attractive production sharing contracts and a reasonably low cost environment and the investment case seems compelling.  Companies such as Afren, Maersk, Repsol, ExxonMobil, Marathon, Petroceltic and Chevron have joined long timers in the region such as DNO, Genel Energy, Gulf Keystone and Western Zagros, and the case for further regional consolidation seems strong.

[Read more…]

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