Commercial Services
Brochure
For over 30 years PDC has offered the most comprehensive oil and gas commercial services studies worldwide.
PDC’s core strength is the deep commercial knowledge gained in more than 70 countries and over 30 years of experience. PDC provides unrivalled commercial insights to implement solutions that produce enduring results for our clients. PDC’s professional team of engineers, geoscientists and economists offer a broad range of services, commercial evaluations and analysis including:
Due Diligence Economic Evaluations Field Commercialisation Studies Fiscal Regime and Modelling Market Studies Government Advisory Negotiations SERVICES COMMERCIAL
Commercial Experience
COUNTRY Egypt CLIENT Egyptian Natural Gas Holding Company (EGAS) YEAR 2015 – 2016 Evaluation of Investment Costs Zohr Field PDC carried out a project to provide support to EGAS covering two main areas. The cost analysis of new developments and also technical evaluation of development plans project involved an assessment of the Zhor field development costs to allow an economic evaluation to made providing the background for agreement on a gas price.
COUNTRY Nigeria CLIENT Nigerian Agip Oil Company (NAOC) YEAR 2015 Price Benchmark for NGL Domestic and Export Market PDC carried out a project to determine the natural gas liquids benchmark price in the Nigerian domestic and export (Atlantic basin) market. The study was to assess historical prices in different locations and quantify inter-regional price differences. Also, determine price linkages for each NGL product stream to other relevant hydrocarbon prices (principally natural gas and crude oil) and consider current and likely regional imbalances to determine the sustainability or otherwise of current trade flow patterns. Furthermore, forecast product prices based on assessed levels of ethane frac spreads, oil product crack spreads and oil product-oil product price differentials based on a given crude oil price scenario and the outlook for natural gas prices.
COUNTRY Ghana CLIENT Ministry of Energy and Petroleum YEAR 2014 Gas Master Plan PDC was subcontracted by another consultant who was appointed by the Government of Ghana to develop a national medium to long-term gas strategy. This included recommendations on an optimised gas infrastructure plan, prioritised gas allocation across exports and domestic utilisation options and a suitable pricing, regulatory and institutional framework for implementation of the gas strategy. PDC developed an integrated gas master plan model covering demand projections, upstream production profiles, infrastructure development and economic analysis of policy priorities. Significant pricing, policy and regulatory recommendations were drawn out and compared with the existing frameworks. This enabled a road map to the proposal for optimal usage of gas and development of the gas market.
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Commercial Experience
COUNTRY Indonesia CLIENT Coordinating Ministry for Planning YEAR 2012 - 2014 Gas Development Master Plan PDC completed a major gas development master plan for the Ministry of Planning covering all aspects of the Indonesian gas industry. This included exploration and production, gas transportation, LNG and gas distribution. Specific project tasks included the analysis of domestic demand and preparation of forecasts under different price scenarios, construction of a gas development master plan model to be used to identify an optimal infrastructure investment plan under alternative scenarios, and policy notes covering government actions to develop downstream gas markets, the market structure and, in particular, ownership and operation of pipeline pricing policies, incentives for switching to natural gas among households and road transport users and the role of the private sector in developing the gas market through public-private partnerships.
COUNTRY Jordan CLIENT Ministry of Energy and Mineral Resources YEAR 2013 Production Sharing Contract Re-Negotiation PDC advised the Ministry of Energy and Mineral Resources on the production sharing contract that it had with BP covering the Risha gas field. PDC supported the position stated by BP that further development of the shallow gas reserves was unlikely. Based on this the Ministry has now contracted for an FSRU to be located offshore Aqaba. BP has now withdrawn from the concession.
COUNTRY Cameroon CLIENT GDF Suez YEAR 2012 - 2013 LPG and Condensate Market Assessment for Cameroon LNG Project As part of the development of an LNG liquefaction plant PDC carried out a regional market study for the parallel products from the plant being LPG and condensate. PDC prepared detailed supply and demand LPG matches for a large number of potential markets covering western and central Africa. PDC also carried out an assessment of international markets for condensate.
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Commercial Experience
COUNTRY Sierra Leone CLIENT Sierra Leone Consolidated Refinery Group Ltd YEAR 2012 Market Study & Financial Model for a Refinery PDC provided a market study and financial model for a proposed refinery in Sierra Leone in connection with bank financing. The study was based on the relocation of a stored refinery in Lebanon previously installed in Cyprus and to be re-assembled at an old refinery site in Sierra Leone.
COUNTRY Israel CLIENT Ministry of Energy and Water YEAR 2011 Strategic and Economic Consulting Services in the Field of Natural Gas Policy PDC led a team of consultants to advise a high-level inter-departmental committee on the future structure for the development of the gas industry and in particular gas exports. The work was carried out for the Ministry of Energy and Water and PDC had direct communication on the policy with both the Minister and the Director-General of the Ministry. The Committee published its report in September 2012 and included in its report specific thanks to PDC to its input. PDC prepared a major benchmarking study which highlighted the differences and similarities between Israel and the policies of eleven countries. The country studies involved a comprehensive review of the domestic gas industry from reserves within the country, exports, production, consumption to gas infrastructure. The critical aspect of the study was the industry organisation and the regulatory structure within the country and how state entities fit into the industry.
The work also involved providing economic and financial advice to the Government of Israel regarding the development of gas export infrastructure. A model was developed to calculate government revenues as different export strategies and export infrastructure projects are developed. The objective of the project was to provide an optimised export strategy in terms of gas volume and export channels, by taking into account project development costs, future domestic and European demand developments and potential future gas findings and developments.
COUNTRY Mozambique CLIENT Independent US Oil Company YEAR 2009 LPG Study East Gauteng & Mpumalanga Regions of South Africa PDC was awarded a contract from an independent oil company to review the potential for landing LPG in Mozambique to meet the local market needs and possible export to South Africa.
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Commercial Experience
COUNTRY Russia CLIENT European Bank for Reconstruction & Development YEAR 2009 Technical and Commercial Due Diligence PDC carried out a technical and commercial due diligence study of a project being carried out by the Monolith subsidiary of the Rosa Mira independent oil trading group. PDC prepared a technical review for the business concept, the viability of the concept, a qualitative review of the technical solution, associated petroleum gas supply contract, offtake contracts, infrastructure, staff, licenses and permits, operation and maintenance risks, financial and technical performance indicators, best practice and next steps. Also, a management review covering the following: management capability, management structure, quality control management and operations management. PDC gave its comments and recommendations which involved processing associated petroleum gas from two oilfields in Russia – the Nizhne Shapshinskoye and the Zapadno-Salymskoye oilfields.
COUNTRY Nigeria CLIENT Magnartis Finance & Investment Ltd YEAR 2008 - 2009 Advisory Services for the Privatisation of the Nigerian Gas Company (NGC) PDC undertook due diligence of NGC to establishing the legal, operational and financial condition of the company preparatory to its unbundling and privatisation. This included legal, technical and financial separation of the pipeline business from the gas marketing and distribution business.
COUNTRY Tanzania CLIENT Energy of Water, Utilities, Regulatory Authority YEAR 2008 Consultancy Service for the Implementation of Bulk Procurement of Petroleum Products for the Tanzanian Local Market PDC provided consultancy service for the implementation of Bulk Procurement of Petroleum Products for the local Tanzanian market. The study covered an analysis of existing procurement and distribution practice, comparative review of bulk procurement in relevant countries, design and recommendation of a bulk procurement system and comparative practice analysis of other countries and provided advice on alternatives.
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Commercial Experience
COUNTRY Israel CLIENT Natural Gas Authority YEAR 2006 - 2007 LNG Regasification Terminal Study PDC carried out a study of establishing an LNG import and re-gasification terminal to diversify natural gas supply to the country. This pre-feasibility study considered the potential availability and pricing of LNG supplies, the expected gas demand profile, the pros and cons of potential solution technology alternatives, and the impact of LNG imports on the existing and planned market structures. Recommendations were prepared for a high-level LNG sourcing strategy, a corporate and commercial structure for the import terminal project and a preferred regulatory and energy policy approach for the introduction of LNG.
COUNTRY Uganda CLIENT Ministry of Energy & Mineral Development / World Bank YEAR 2004 - 2006 Downstream Petroleum Pricing and Regulation PDC assisted the Ministry of Economy and Mineral Development to effectively implement and monitor a new legal and regulatory basis for the downstream petroleum industry following the introduction of the Petroleum Supply Act, 2003. As part of the project, PDC reviewed the oil industry structure, pricing and quality standards, developed a mechanism for pricing monitoring and implanted this monitoring system, developed a regulatory system for licensing and inspection and also provided regulations to improve safety and construction standards.
COUNTRY Kenya CLIENT Ministry of Energy YEAR 2004 - 2005 LPG Facility Construction and Market Studies The Government of Kenya planned to construct an import handling and LPG storage, distribution and bottling facilities in the country. As part of these plans, Ministry of Energy commissioned a study to determine the East African region LPG consumption to the year 2024 to determine the optimal project scope, capacity and the project components for the proposed facilities.
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Commercial Experience
COUNTRY Pakistan CLIENT Oil and Gas Regulatory Authority (OGRA) / World Bank YEAR 2003 – 2004 Tariff Regulatory Regime for Natural Gas Industry PDC led a group of consultants of a project covering the development of a tariff and regulatory regime for the gas industry in Pakistan to assist OGRA to regulate the two Pakistan gas transmission and distribution companies and provide reports on gas investment, operating costs and benchmarking. Seven detailed reports were prepared for the client and PDC led the development of two of these reports and contributed to a third. The reports that PDC produced were Report 3 on Capital Investment and Report 6 on Benchmarking. PDC also contributed to Report 4 on Operating and Maintenance Costs. Report 3 included a forecast of capital investments required by each of the gas companies and covered both transportation and distribution investments. It also included additional investments covering import infrastructure pipelines and additional gas storage facilities for Sui North (subject to colder weather and higher winter peaks). PDC inputs to Report 4 covered particularly issues of gas losses which are significant.
COUNTRY Lebanon CLIENT Ministry of Energy and Water / World Bank YEAR 2003 Hydrocarbons Strategy PDC along with its associates formulated a comprehensive long-term strategy for the introduction and utilisation of natural gas and efficient development of the petroleum sector in Lebanon. This consisted of carrying out eight tasks that focused on reviewing and analysing the existing energy supply and demand situation in Lebanon, reviewing the potential for development of a regional gas market and its potential benefits, outlining the principles of gas pricing, analysing various forms of gas industry structures, outlining the legal and regulatory framework, preliminary feasibility study of Tripoli and Zahrani refineries, environmental impact assessment and which concluded with providing recommendations on the strategy.
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Commercial Experience
COUNTRY Republic of Ireland CLIENT Ramco YEAR 2002 Gas Negotiations - Seven Heads Gas Field PDC provided support for the development of the Seven Heads offshore gas field. The work included gas demand /supply forecasting and network operation and balancing. The gas demand forecast was constructed by looking at the development of individual sectors of which the most important was power generation. PDC met with most large consumers during the project and was able to develop a robust projection. The gas supply forecast covered production from existing fields, additional fields to be developed and imports from the UK. A particularly important issue was timing issues related to the Corrib development. The early phase of the work was carried out prior to the establishment of the Commission for Energy Regulation (CER). PDC developed a gas transportation pricing model which allows the value of indigenous gas to be measured against imported gas. Once CER became established PDC provided support to Ramco and produced responses to CER regarding subjects such as backup gas and balancing.
COUNTRY Croatia CLIENT Ministry of Economy YEAR 2001 - 2002 Technical Assistance for Oil and Natural Gas Pricing and Tariffs PDC led a team of consultants to provide a study for the government of Croatia and provided technical assistance for oil and gas pricing and tariffs in Croatia. The study was done in two parts. Part A dealt with Gas Pricing and Tariffs, and Part B dealt with Petroleum Products Pricing. The report provided a detailed review of the current oil pricing model, review of potential IEA and EU requirements for oil storage taking into account Croatia’s domestic production. The Consultant also indicated the capital costs of this storage and the possible impact on product pricing.
COUNTRY Georgia CLIENT Georgian Gas Corporation YEAR 2001 Transit Fee Negotiations PDC advised Georgian Oil Corporation on its negotiations with BP and Azerbaijan on the transit of gas from Azerbaijan through Georgia to Turkey. In addition to providing input to commercial negotiations, PDC provided Georgia Oil Corporation with guidance on appropriate standards to be used in pipeline construction and the interface between the oil and gas transit pipelines. Also, as part of the negotiating process PDC provided to the Georgian Oil Corporation details of comparable gas transit fees in Ukraine and North Africa.
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Commercial Experience
COUNTRY UK - Northern Ireland CLIENT Utility Regulation and Competition Office (OFREG) YEAR 2001 Phoenix Natural Gas Price Control Review PDC carried out a project to assist OFREG in assessing costs and operational efficiency of Phoenix Natural Gas conveyance and supply businesses and a requirement was set to ensure that the monopoly conveyance business was allowed sufficient resources to continue the development plan and attract customers to gas. On the one hand whilst, on the other, ensuring that the underlying prices charged through to suppliers were fair and provided a “level playing field” between suppliers. Our work was to assist in the determination of the price to suppliers of gas conveyance as from 1 January 2002. Prices for each conveyance category were set so as to allow PNG to recover its allowed expenditure, as forecast through to 2016 allowed expenditure includes the allowed operating expenditure and the allowed working capital adjustment.
COUNTRY UK CLIENT Office of Gas and Electricity Markets (Ofgem) YEAR 2000 – 2001 Evaluation of Gas Transportation and Distribution PDC was the technical advisor to Ofgem the UK gas and electricity regulator as part of the Price Control Review 2002-7. This involved the review of the efficiency of Transco the transportation and distribution company. The project which lasted for more than a year was one of the most detailed efficiency studies carried out under gas regulation.
COUNTRY Vietnam CLIENT PetroVietnam YEAR 2000 Negotiations for the Purchase of the Nam Con Son Gas PDC supported depletion contract negotiations between PetroVietnam and BP group. PDC also led negotiations for a 15-year gas supply contract with Électricitié de France to run the Phu My 2.2 power station. Over a period of nine months, PDC was actively involved in the negotiations and succeeded in materially advancing an otherwise stalled negotiations campaign. At the time the total foreign investment in Vietnam was around $200 million. The total investment for the offshore gas fields, a 400 km two-phase offshore pipeline, a terminal and power station were $2.5 billion. This project now supplies a significant part of the electricity demand in Vietnam.
www.pdc.uk.com · Tel +44 (0)20 8347 3498 PETROLEUM DEVELOPMENT CONSULTANTS
We are an independent international oil and gas consulting company based in London focusing on the provision of integrated subsurface, engineering and commercial studies covering both the upstream and downstream sectors of the international oil and gas industry.
Consulting Services
PDC offers a specialised range of services DEVELOPMENT that include both technical and commercial Field Development Planning Gas Strategy Development solutions for its clients including oil and LNG/LPG Development gas companies, governments, financial Conceptual Design institutions and law firms. Feasibility Analysis Project Management Refinery Studies Working either independently or as an Government Advisory integrated team, PDC’s consultants can provide cost effective solutions to many COMMERCIAL Due Diligence projects. Field Commercialisation Studies Market Studies The services are split into four main categories: Negotiations Economic Evaluations EXPERT WITNESS Fiscal Regime and Modelling PDC has a significant and successful history providing expert witness reports in legal oil and Government Advisory gas disputes and arbitration cases. David Aron, RESERVES Managing Director of PDC, and his team acted Reserves Reporting, Audit, Estimation, Certification as an Expert Witness in a number of courts and Reservoir Simulation, Modelling, Evaluation, EOR oil and gas arbitrations. Resources Assessments, Classification, Prospect Unconventional Development
Petroleum Development Consultants Ltd www.pdc.uk.com Stanhope House [email protected] 4-8 Highgate High Street Tel +44 (0)20 8347 3498 London N6 5JL United Kingdom