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Deepwater Production Handling Agreements

Deepwater Production Handling Agreements. THEMES AND CONCEPTS. Background Case for action Objective Course of Action/Timing Drafting Team Drafting Process Guiding Principles Status Model Form PHA Major Components Select Themes & Concepts Facilities Services Fees & Expenses Capacity

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Deepwater Production Handling Agreements

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  1. Deepwater Production Handling Agreements THEMES AND CONCEPTS • Background • Case for action • Objective • Course of Action/Timing • Drafting Team • Drafting Process • Guiding Principles • Status • Model Form PHA Major Components • Select Themes & Concepts • Facilities • Services • Fees & Expenses • Capacity • Metering & Allocation • Transportation

  2. Deepwater Production Handling Agreements CASE FOR ACTION • PHA Evaluations, Negotiations & Contractual Agreements are Complex • No Consistency Framework Relative to the Terms & Conditions of Contractual Agreements (i.e. Lack of Standardization) • Negotiations are Time & Resource Consuming

  3. Deepwater Production Handling Agreements OBJECTIVE • Facilitate efficiency in terms of becoming more efficient with time and resources • Standardize, but simplify, PHA to extent possible (recognizes that each PHA is unique with its own set of issues/circumstances)

  4. Deepwater Production Handling Agreements COURSE OF ACTION/TIMING • ActionEst. Completion • · Create PHA Drafting Team 02/2003 • ·Assemble Example Forms 03/2003 • ·Develop Base Model Form PHA 03/2004 • ·OCS Committee Review 05/2004 • ·Edit Period 07/2004 • ·Industry Review 09/2004 • ·Edit Period 11/2004 • ·OCS Committee Endorsement 12/2004 • · AAPL Forms Committee Approval 12/2004

  5. Deepwater Production Handling Agreements PHA MODEL FORM DRAFTING TEAM DraftingConsulting ChevronTexaco ExxonMobil Shell Exploration & Production

  6. Deepwater Production Handling Agreements DRAFTING PROCESS • Assemble and review example forms • Identify common/unique themes • Select base form to develop preliminary model form • Develop Guiding Principles • Draft Major Components • Draft “Boiler Plate” Language

  7. Deepwater Production Handling Agreements GUIDING PRINCIPLES • Generic as Possible • Broadly Applicable • Simplified in Terms of Readability • Provide basis for making business decisions • (i.e. distinguish business decisions from model form decisions) • Can be used as a catalyst for a Shelf Model Form PHA

  8. Deepwater Production Handling Agreements STATUS Current Activity • Drafting of Major Components Remaining Activities • Complete Drafting of Major Components • Drafting of “Boiler Plate” Language

  9. Deepwater Production Handling Agreements MAJOR PHA COMPONENTS • Facilities Design, Construction, Operation, Use and Abandonment •  Facility Ownership & Funding • Services • Fees & Expenses • Processing & Handling Capacity • Production/Fuel Measurement & Allocation • Downstream Transportation • Suspension of Operations • Term • Tax, Royalty & Insurance • Liability & Indemnification

  10. Deepwater Production Handling Agreements Theme: Facilities

  11. Deepwater Production Handling Agreements Theme: Services

  12. Deepwater Production Handling Agreements Theme: Fees & Expenses

  13. Deepwater Production Handling Agreements Theme: Capacity

  14. Deepwater Production Handling Agreements Theme: Capacity

  15. Deepwater Production Handling Agreements Theme: Metering and Allocation

  16. Deepwater Production Handling Agreements Theme: Metering and Allocation

  17. Deepwater Production Handling Agreements Theme: Gathering & Transportation

  18. Deepwater Production Handling Agreements Theme: Gathering & Transportation

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