Commercial, in this context, is the work to establish all agreements that need to be in-place between licenses and oil companies to process the hydrocarbons and to transport them to the delivery point for a buyer of oil or gas. It includes Requests for Capacity/Use, Study Agreements, Tie-in and Processing Agreements, Lifting Agreements, Transport Agreements, Crossing Agreements and more. These activities are part of a project deliverable, and the project team needs to be set up to undertake them.
It is essential to understand the involved parties views and positions at an early stage of the field development. Understanding the capacity situation in the existing infrastructure are essential for satellite projects with processing of the wellstream at an existing platform. The commercial process starts pre-DG0 and are completed immediately prior to production start (DG4). Some examples:
- The initial commercial evaluation needs to be part of the DG0 decision package to ensure a realistic and an efficient project plan.
- For some projects, commercial feasibility is more critial for the DG1 decision than technical feasibility.
- Approaching the DG2 and DG3 desisions, the project team need to have sufficient capacity to undertake the technical work required for the commercial negotiations to establish Term Sheets and fully termed Agreements.
- Production allocation procedures and deferral are often finalized close to DG4.
Many project teams are focused on technical solutions and contracting strategies, which are important too, but the value creation in the commercial solution can be higher for some projects.
0830 Breakfast is served
0905 Commercial activities in early phase field development
0950 Q&A and discussions
1000 End of breakfast meeting