Understanding Production Sharing Agreements in Oil and Gas
The existence and particulars of a comprehensive production sharing agreement means that they are likely to be looking for quality outdoor equipment to use on the site. In these contracts, the government and an oil company agree to explore and produce the natural resources on a specific tract of land. These contracts are usually also accompanied by work commitments and capital investment promises on the part of the organization. In most cases, the share is that the company will receive a majority amount of output and the government will take the remaining portion, but it can vary wildly.
When a production sharing agreement exists, it means that the company is responsible for everything, from the production of wells to the transportation of the goods to the actual sale of the oil. In these cases, the company usually will end up with no more than 75% of the profit from the wells. This can often be more than a comparable concession agreement, where the company ends up with only 5% of profit. However, the production sharing agreement companies enter into often require that they bare more risk in exchange for a higher benefit. This leads to greater demand for oil and gas field tools, and sometimes even wood cutting equipment like log splitters and chippers.
Oil and gas fields are dangerous places to be, and if the company cannot afford any mistakes, there can be big trouble. If a company does not keep the areas surrounding the trees clear, the risk of an injury or fatality is greater than 10%. With oil, mud and other potential dangers near an uncapped well, a fast reaction is necessary to prevent injuries. By having the right tools in place, demolition and oil companies can make sure that these situations do not arise.
If not, there could be fatal consequences. A company should have log splitters and chippers available, as well as demolition equipment like accordion breakers and chisel splitters, to locate and separate any obstacles within the immediate area of the oil and gas well.
A less likely scenario is that the operation will involve more wooded regions without easy access to clearing or construction equipment. For these scenarios, log splitters and chippers are necessary at every work site to accommodate any future operations. This is especially true if the company could be entering into a long term contract that calls for a lot of work. The more long term projects a company can take on, the more well-paying projects they can accept. For this reason, oil and gas field companies should have log splitters and chippers available at all times.
