Petroleum Industry and Project Management Review

Flashcard practice set based on the lecture notes covering project management concepts, petroleum economics, corporate executive history, key historical concessions, and oil industry terminology.

What is the centralized management of one or more portfolios to achieve a specific objective?

Portfolio Management

What gathering of team members and key stakeholders takes place at the outset of a project to formally set expectations?

Kick-off meeting

What is the process that allocates money, allowing an organization to invest strategically and tactically in continuous improvement?

Capital budgeting

What are the two common contract payment structures for professional services and material procurement?

Time and Materials (Reimbursable) or Lump Sum (Fixed Price)

In a 3D seismic survey, what term describes a seismic line that runs parallel to the direction of acquisition?

In-line

In a management and project context, what does the acronym EPCM stand for?

Engineering, Procurement, and Construction Management

Which company signed a farm-out agreement with TotalEnergies E&P Nigeria to sell a $40\%$ participating interest in offshore Nigerian licenses?

Chappal Energies

What is the name of the provision in an oil and gas lease that allows the lease to continue as long as oil or gas is being produced?

Habendum clause

For small projects, what is one way to overcome the challenge of funding preliminary cost estimate data gathering by soliciting vendor input?

Budgetary quotes (or Request for Information - RFI)

What is the process of examining a seller's property and records before a prospective buyer commits to its purchase?

Due diligence

What formal internal budgetary document authorizes spending on a specific well or project?

Authority for Expenditure (AFE)

What is an agreement between a host country and operator allowing the operator to evaluate geological or geophysical data in a specific area?

Technical evaluation agreement

What is a significant point or event in a project, program, or portfolio referred to as?

Milestone

What are the two main terms within the contract model suggested by the association of Drilling Contractors for mobile offshore drilling unit operations?

Day rate / Turnkey

In a management context, what does the acronym FID stand for?

Final Investment Decision

What term describes a series of phases representing the evolution of a product from concept through delivery, growth, maturity, and retirement?

Product life cycle

What is the right that other parties to a lease, well unit, or concession have to acquire interest prior to selling to a third party?

Preferential Right to Purchase (PRP) / Right of First Refusal

When developing an oil and gas facilities project schedule, what is the third operational constraint alongside lease expiration and market price spikes?

Weather windows

What term describes an arrangement where an external organization performs part of another organization's function or process?

Outsourcing

What is defined as the comparison of actual or planned products, processes, and practices to those of comparable organizations to identify best practices?

Benchmarking

What high-level timeline depicts milestones, significant events, reviews, and decision points in management?

Roadmap

What grant extended by a government permits a company to explore for and produce oil, gas, or mineral resources within a strictly defined area?

Concession / License

What is the return of part or all of a lease or concession to the granting authority called?

Relinquishment (or Concession Surrender)

What ratio compares the amount of foreign personnel, material, or equipment used in a project relative to local resources?

local content ratio

What percentage share of production (free of drilling and producing costs) is created by the lessor or royalty owner?

Overriding Royalty Interest (ORRI) or Royalty interest

What legal instrument of conveyance is usually used in title curative work to allow an owner to quit or give up a claim to a title?

Quitclaim Deed

What bar chart of schedule information lists activities on the vertical axis, dates on the horizontal axis, and durations as horizontal bars?

Gantt Chart

In contract terminology for Projects and Operations like Drilling and Completions, what does PO stand for?

PO: Purchase Order

In project management, what does the milestone acronym FEL stand for?

Front End Loading

What petroleum economics calculation technique uses distributions for uncertain input variables to output a distribution of potential outcomes?

Monte Carlo simulation

In mud logging, what does the acronym FID stand for?

Flame ionization detector (FID)

What does the professional society acronym SPEE stand for?

Society of Petroleum Evaluation Engineers

In well completions, what does the acronym SCADA stand for?

Supervisory Control And Data Acquisition (SCADA)

What company's concessions in Congo did the Congolese president refuse to ratify?

Tullow Oil

According to BP's CEO, what was the initial estimated oil spill flowing rate during the Deepwater Horizon crisis?

$$5,000\,\text{bbl/day}$$

Which Texas oil man lost his Libyan concession and much of his fortune attempting to corner the silver market?

Bunker Hunt

What milestones were set in the $2009$ Petrobowl competition?

Largest Petrobowl, Largest international participation, First MVP award presented

What deal is cited as the largest merger in American history?

Exxon + Mobil

In what year was ExxonMobil founded through a merger?

$1999$ (through a merger)

What is Halliburton's ticker symbol on the New York Stock Exchange?

HAL

Where did the Japanese consortium Arabian oil get their concession?

Offshore Neutral Zone

When and how was Royal Dutch Shell Group (RDSG) formed, and what was the stock split?

$1907$ - Royal Dutch/Shell Group (RDSG) was created by purchase of Royal Dutch $25\%$ shares of Shell. Royal Dutch held $60\%$ stock in operating subsidiaries and Shell held $40\%$

When and how did RDSG gain $20\%$ control of Russia's total oil production?

$1912$ - the Rothschilds sold their interests to RDSG, instantly making it a major economic force in Russia

Who organized the first drilling operations and led the British Concession syndicate in Persia?

Knox D'Arcy

What was the reorganized name of the British Concession?

Anglo-Persian Oil Company (APOC)

What agreement in the original Iranian Petroleum Company contract was a major stumbling block to the Aramco merger?

The Red Line Agreement

Which company and owner won the Saudi Arabian Neutral Zone concession in $1948$ for \\$9.5\,\text{million} upfront, \\$1\,\text{million/year}, and a 55\text{\cent}/\text{bbl} royalty?

Pacific Western, J.P. Getty

In $1947$, Aminoil won the concession to which Middle East oil field for \\$7.5\,\text{million} cash, minimum \\$625,000/\text{year} royalty, and $15\%$ of profits?

Kuwait Neutral Zone concession

During the 1950s, which three countries reworked their concession agreements to include the $50/50$ profit split principle?

Saudi Arabia, Kuwait, Iraq

Continental Oil Company (later Conoco) was formed in $1929$ by a merger between which two companies?

Rocky Mountain Marketing Company, OK-based Crude Producer and Refiner

What company was first granted concessions in Saudi Arabia?

SOCAL

What contract signed in July $1928$ created an oil cartel in ex-Ottoman Empire territory?

Red Line Agreement

What event was most responsible for the increase in oil prices in $1974$?

Arab Oil Embargo

What is the name of the private New Orleans-based oil company founded in $1984$ whose CEO is Mr. J. Luis BaSos?

ORX Resources, private

What is the price of WTI crude oil stated in the transcript?

\\$92.64/\text{bbl}

What is the approximate NPV of receiving \\$500,000 in $5$\text{ years} with a discount factor of $10\%$?

\\$310,460 (approx.)

Which company is publicly traded on the TSX and NYSE under the ticker TSX and best known for pipeline projects like Keystone?

TransCanada

What is the correct arrangement of quartz, dolomite, and calcite in order from densest to least dense?

dolomite, calcite, quartz