Risk-Sharing Strategies for Mature Fields or Greenfield Developments
Article from: OGEL 5 (2004), in Roundup of Articles
Joint Venture Arrangements, Deal Structures, Service-for-Production Swaps, Correlating Performance With Payment, and Financing Considerations
At both ends of the reservoir life cycle -- greenfield field developments for largely untapped fields as well as production from mature and declining fields -- one finds risk sharing strategies. Whether proving up a field with some element of uncertainty (e.g., geophysical, country risk, technological challenges, etc.), or managing the diminishing returns of a mature field, we witness a continuing interest by service companies as well as the production venture itself to exchange service for equity participation in fields or profit share linked to production. ...