What is an upstream contract?
What is an upstream contract?
Upstream Agreement means any agreement existing as of the Effective Date under which Onconova obtains a license or other right from a Third Party to develop, make, use, sell, offer for sale or import the Compound and/or the Licensed Product in the Licensed Territory.
What is upstream process in oil and gas?
The upstream segment of the oil and gas industry contains exploration activities, which include creating geological surveys and obtaining land rights, and production activities, which include onshore and offshore drilling. Crude oil is categorized using two qualities: Density and sulfur content.
What is upstream state?
1 in or towards the higher part of a stream; against the current. 2 (in the oil industry) of or for any of the stages prior to oil production, such as exploration or research.
What is PSC in oil and gas?
A PSC (Production Sharing Contract), or PSA (Production Sharing Agreement) was first introduced in Indonesia in 1960 for the agriculture sector before it was adopted for the petroleum industry.
What is PSA oil and gas?
1. Production sharing agreement (PSA) is a contract between one or more investors and the government in which rights to prospection, exploration and extraction of mineral resources from a specific area over a specified period of time are determined.
What are the two kinds of agreements used in the oil and gas industry?
Because of the diversity of ownership of oil and gas interests and/or the need to share economic risks, the oil and gas industry has utilized a number of different contractual arrangements. The most common types of contracts used are farm-outs-farm-ins, or well trade agreements, and joint operating agreements.
What is service contract in oil and gas industry?
Pure service contracts2 are agreements for the provision of specific oilfield services, such as the acquisition of seismic data, drilling and construction.3 They are between an oilfield operator, who is usually an oil company, and the service contractor, who provides its technical service in exchange for a prescribed …
What is the difference between downstream and upstream in oil and gas?
Simply put, upstream works include the exploration and production of crude oil and natural gas, whilst downstream refers to the processes applied after extraction through to it being delivered to the customer in whatever format required.
What is the difference between upstream and downstream in the oil and gas industry?
What Is the Difference Between Upstream and Downstream in the Oil and Gas Industry? Upstream oil companies are involved primarily with oil discovery, extraction, and production. Downstream oil companies instead deal with refining and delivering petroleum products to consumers.
What is RSC in oil and gas?
Revenue Sharing Contract (RSC) is a term used in the Hydro carbon industry and refers to an agreement between Contractor and Government whereby Contractor bears all exploration risks, production and development costs in return for its stipulated share of revenue resulting from this effort.
What is service agreement in oil and gas?
Pure service agreements are contracts for the provision of specific technical oilfield services. These agreements stipulate the procedure and schedule for the performance of and payment for such services. Model contract forms are very popular with pure service agreements.
What are the types of petroleum contracts?
Those contracts can be grouped, generally, into the following five categories: (1) granting instruments, (2) purchase and sale (and finance) agreements, (3) joint ventures, (4) service agreements and (5) hydrocarbon marketing agreements.
What is risk service agreement?
Risk service contracts. This is an arrangement whereby the oil company is engaged by the government entity as a contractor to infuse the entire risk capital for exploration and production of petroleum.
Are refineries upstream or downstream?
Downstream
What Are Downstream Operations? Downstream operations are the processes involved in converting oil and gas into the finished product. These include refining crude oil into gasoline, natural gas liquids, diesel, and a variety of other energy sources.
Is FPSO upstream or downstream?
FPSOs integrate upstream, midstream, and downstream activities. They extract oil from the well, process and store it on board and deliver the partially treated crude oil to tankers for transportation to a refinery.
What are the upstream activities of an oil and gas company?
These activities include plugging and abandoning of fields and well, as well project reevaluation. It is important to note that determining the applicable fiscal regime and entering a particular type of oil and gas agreement are part of the upstream activities.
What are the types of oil and gas agreements?
2. Production sharing agreement A production sharing agreement or PSA, which is also known as a production sharing contract or PSC, is another type of oil and gas agreement, specifically a type of a contractual system that was first introduced by Indonesia in 1966.
What is an oil and gas contract?
Each specific type of contract regulates the risks and expenses for the contractor. These types of contracts are necessitated by the diversity of ownership of oil and gas interests and/or the need to share economic risks.
What is an example of upstream and downstream sector?
For instance, storage activity within the production facility or in proximity to the oil or gas field essentially belongs to the upstream sector. Refineries with transportation and storage activities technically belong to the downstream sector. 3. Downstream Sector and Examples of Downstream Activities