FAAP JV Training

Characteristic below resulted Joint Venture arrangement as a common practice in Oil & Gas industry, except:

• High risk

• Large investment

• High Technology

• Large Employee Number

• Long-term investment

Which one is NOT obligation of an Operator?

• Produce regular report

• Obtain budget approval from JV Partner

• Appoint JV Partners’ OCM representatives

• Conduct TC/OC Meeting

• Pay all taxes related to joint operations

Which one is NOT obligations of JV Partner?

• Review & approve proposed budget from Operator

• Perform JV Audit

• Appoint OCM representative

• Pay cash call as per due date

• Review & approve Contract award

Which one is NOT Operating Committee functions?

• Attend Operating Committee meetings

• Vote for required JV decision

• Lead JV Audit

• Approve JV budget

• Approve Contract award

Which one is NOT benefits of being an Operator?

• Able to claim Parent Company Overhead

• Able to control the operational as per Company’s standard procedure

• Able to share G&A costs with other blocks under same Operator

• Able to utilize Joint Venture fund for Company’s own investments

• Able to represent the parties in dealings with Government

What is the main difference between Joint Operations reports and corporate reports?

• Before tax & after tax

• Including Parent Company Overhead & excluding Parent Company Overhead

• Gross number & net number as per Working Interest

• Cost recoverable number & Non cost recoverable number

• Operator costs & Non operator costs

Which one is NOT the consequence(s) of a party that does not join a drilling program (Sole Risk)?

• Unable to obtain data related to the program

• Do not need to fund the program

• Pay certain premium if the party decided to join the program & further related program

• Received cost recovery from the program

• Unable to take & dispose of hydrocarbons produced

Expenditure during the month was $10million and the working capital was $5million.

Medco working interest 70%. How much is the expenditure in Joint Interest Billing?

• $3million

• $7million

• $10million

• $3.5million

• $5million

Expenditure during the month was $10million and the working capital was $5million.

Medco working interest 70%. How much is the working capital in Medco Net company book?

• $7million

• $5million

• $10million

• $3.5million

• $3million

Which information is NOT stated on Joint Interest Billing?

• Expenditure

• Working capital

• Corporate income tax

• Over/under called position

• Cumulative cash call paid