Upstream&Downstream Technology & Trading Finance Services
The objective of oil and gas operations is to; Find, Extract, Refine and Sell oil and gas, buy and sell refined products and related products.
It requires substantial capital investment and long lead times to find and extract the hydrocarbons in challenging environmental conditions with uncertain outcomes.
Exploration, Development and Production is done through establishing Joint Ventures, to share and minimize the substantial capital costs and diversifying risks
- The outputs often need to be transported in significant distances through pipelines and tankers; gas volumes are extremely liquid, so it’s transported by special carriers, and is then regasified on arrival at its destination. Gas remains therefor challenging to transport, thus many producers and facilities look for long-term contracts to support the infrastructure required to develop a major field, which are particularly in off-shore locations.
- The industry is exposed significantly to macroeconomic factors such as; commodity prices, currency fluctuations, interest rate, risks in political developments. The assessment of commercial viability and technical feasibility to extract hydrocarbons is complex, and includes a number of significant variables.
- The industry can have a significant impact on the environment, consequential to its operations, and is often obligated to remediate any resulting damage.
Governments are very sophisticated in this industry and are therefor looking to secure a significant share of any oil and gas produced on their sovereign territory through the taxation of oil and gas extractive activity, and the resultant projects, which is a major source of revenue for all governments