OCSLA Regulation and Decommissioning Plan - Paper Example

3.0 Planning for Decommissioning

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OCSLA regulation defines decommissioning as the ending of potential gas, gas and sulphur operations. This will oversee the returning of the gas field back to the government because it is not economically viable. Egyptian oil regulation regulations require that lessees promptly and permanently plug and temporarily-abandoned gas wells if the government so orders. Abandoning well consists in removing all set up infrastructure casing for the below and mud line for the plugging for the hole and setting mechanical, cements plugs for the specific intervals while preventing fluid flow. The outside environment issues while abandoning the associated infrastructure. The special provisions for holding and determining the process of disabling the equipment also requests a special insurance for the materials and energy. These provisions involve completely disconnecting while overseeing the process of the piping and installation blind. The currently regulatory procedures that is conversant with various industry plans. The decommissioning plan plans for the developed for all facilities. These plans for the reviewed and are approved by the NRC and the agreement between the Egyptian government and the country.

3.1 Uncertainty and Unchanging Practices

The criteria hamper planning and impede operations. This involves re-evaluating and revising the various regulations, as well as the reclamation for the conventional uranium production. The changes in ownership of sites lead to the loss of corporate memory and thereby for hampering and implementing the plan. The processing facilities identified for the report have operated for decades. There are reasonable for assuming that employees drafting for the original decommissioning plan. Groundwater problems are often unpredictable for the reasons why the tailing covers for the sufficient to prevent for the radon emanation for the erosion for the surface for the direction drainage.

Table 2.0 Decommissioning Plan

Activity Duration

A Transporting workers to the sites 2 days

B Creating electrical supply 2 days

C Transporting supplies to the site 1 day

D Stripping materials 3 days

E Stripping out the domestics 5 days

F Stripping out the Equipment room 4 days

G Stripping out the office 3 days

H Performing risk assessment 1 day

J Creating for safety procedures 1 day

K Checking the structure for working live and work 5 days

M Transporting equipment for the rig 4 days

N Checking room 1 day

P Transporting working 2 days

Q Finalizing the rig 2 days

4. Compare the two development options

There are several development options that the government can consider for year 2018 if exploration has to continue. Based on the factors established in this study concerning the advanced existence and the size of the gas and gas resources, it is important to note that the potential production as well as the levels, funding and the development costs for the resources are dependent on the resources and non-renewable. These facts bear various important consequences for the various policy making initiatives which are part of the social welfare functions. The first crucial decisions of the government are dependent on the quality and the ability to explore the gas extent. Hence, the government undertakes the exploration by considering the integral economic option that gas present. In this case, the economic and development viability depends on the likely size, existence and the reserve extent.

4.1 Special service Contract

There are several development options proposed by the host government. The development options are part of the special service contract where the operating and service company handles most costs that are paid and fixed as per the gas produced. In determining the service contract and the production sharing contracts, the reasons are largely towards contract management. In this case, the potential drawbacks for contracting will mostly because of the profits, as well as economic inefficiency of the minefield. In this case, there is a need to improve the economic viability for the contract. This involves discussing thoroughly with the gas and the natural gas fiscal systems while creating a perfect variation to the contract.

In this case, the service contract mechanism will involve determining the right political environment while heightening sovereignty concerns that surround the environment for the explanatory factor for the service contract and consequence for the decision for economic terms. However, we have to consider the adoption for the service contract which involves ability of host governments to attract investment by international gas companies for the risk factors specific where the contracts contributes to the reduction while returning international for the gas company. The modified for the contract for making attractive for international gas company, enabling international company for actual rate for returning closer through the various contractual rate of return.

4.2 Concession Contract

The Egyptian government has several objectives in negotiating the contract for the exploration and the development of potential gas land while considering the need to concentrate and maximize the amount of exploration that will increase with the chances of the commercial discovery. The concessions contract for the means the agreement attached to a gas exploration license for gas and applicable one or more concessions operations. This will also help in obtaining technical information of the contract; maximize the efficiency decommissioning process while reviewing possible future explorations. The major objectives are interrelated with the considerable measure while considering the possible total revenues that surround the important revenues of the costs for the large area which are contained in several gas reservations. This objective involves determining the economic rent between the Egyptian government and the company exploring. Concessions and contract foreign companies seeking contract for the legal contract for the hydrocarbon registry.

However, the major challenge is that concession agreement is that long colonial past. The first forms of contracts are provided using various concessions companies bid on exclusive rights for the rights exploring drilling the particular geographic blocs which will only require gas drilling. The favoured companies because they are relatively for straightforward but they for the usually for the blocs for the explored so bidding can be risky. The concessions are provided thought perfect mandating of companies which are reverting to state and the company loses its concessions. The government earn anything from the bid fee that works within the operation contract.

5. Estimating Financial Parameter

The cash flow model integrated diverse risk assumptions for each prospective mine. This involves predictions of performance that results for simple single-point estimating of profitability of given oil and gas prospects for the providing management with spectrum for possible outcomes interrelated probabilities. The simulation provides estimates for the sensitive for investment outcomes to critical assumptions fo...