Standard terms & conditions

The Alwyn Platform standard terms will be broadly similar to those for the Frigg Area.

 

Tariffs offered will vary as a function of a number of parameters including:

 

  • Hydrocarbon quality (specific processing requirements and/or impact on product value).
  • Opportunity cost (where backing out of equity hydrocarbons is required to provide ullage or to compensate where capacity has been sterilised).
  • Modification cost (where additional capital expenditure is required to process the hydrocarbons).

Bookings & send or pay

In order to provide a firm service, a capacity booking is required.  Typically the Tie-in party will have provided a life of field profile for inclusion in the commercial agreement.  For each hydrocarbon contract year (commences 1st October), the Tie-in party will then confirm their capacity requirement 12 months in advance.  There will be some flexibility to modify the life of field profile within this process.

 

Such bookings have balancing terms attached for:

 

  • Tie-in party Send or Pay obligation (or “minimum bill”);
  • TOTAL obligation to redeliver hydrocarbons properly tendered.

These terms are normally negotiated at the same time so as to arrive at an equitable position for both parties. 

 

Force Majeure relief from Send or Pay generally applies to both parties.

ALLOCATION, ATTRIBUTION & MEASUREMENT

The allocation process models inputs and outputs on a mass component basis to provide a physical allocation of products (gas and liquid) to each field.

 

Due to the impracticability of each field exactly matching its hydrocarbon production to dry gas and / or stabilised crude oil quantities, a system of operational substitution applies. The difference between gas and stabilised crude oil quantities delivered and quantities produced (allocated) is termed substitution. The Tie-in party concerned must supply such metering and analysis data so that that party’s field can be allocated its share of gas and liquid products as accurately as possible. If a third party’s quantities can only be determined via subsea completion data, then appropriate procedures will require to be discussed with the Operator.

 

During periods of restriction, production from Alwyn Area fields (i.e., Total equity production) will have priority and priority for any third party fields will be based on a last-in, first-out principle.

 

The TOTAL flow measurement standard is applied to all inputs and outputs. Orifice plate systems are generally specified, but ultrasonic (or other) meters will be considered where it can be demonstrated that an equivalent performance can be achieved.

 

Additional quality measurements required may include composition from on-line gas chromatograph, water measurement and H2S measurement.

 

The TARIFFS

Operating expenditure (opex) is normally charged based on a pro-rata throughput share of the plant opex. This varies over time as a function of total throughput.

 

In addition, a tariff will be applied to reflect an appropriate risk-reward balance for the services to be provided. This will be dependent upon the level of service, hydrocarbon quality, opportunity costs and modification requirements amongst others.

 

Contact names and details are provided on this website to permit a prospective Tie-in party to discuss services and to obtain an indicative cost.

 

Tariff is normally indexed annually based on a standard index published by the Central Statistical Office.

 

TIE-INS & ADDITIONAL EQUIPMENT

The third party will be expected to pay for costs associated with the design, procurement and execution of the tie-in. An appropriate liabilities and indemnities regime will also be required in which the third party will indemnify Total for all losses (except in the event of wilfull misconduct by Total).

 

Where equipment is exclusive to a particular user, then opex for such equipment will be at their sole cost.

 

TOTAL would normally perform engineering and modifications work for such equipment on behalf of new users. Ownership of the offshore tie-in or additional equipment would be transferred to TOTAL E&P UK Limited on completion of the works.

The MAINTENANCE

During planned shutdown and modification periods the platform may require withdrawal of partial or full services.

 

TOTAL makes every effort to reduce such periods and to liaise with downstream parties and field operators to co-ordinate timing of the shutdowns.

 

Standard maintenance periods are up to 14 days during a 2 year rolling period during the summer months, with a period for modifications of up to 20 days subject to 12 months notice.

 

Maintenance periods qualify for relief against "send or pay" and corresponding TOTAL liability on failure to provide services.

LIABILITY REGIME

The general liabilities applied are:

 

Tie-in and Construction

  • Liability regime during completion of tie-in work will require the tie-in party to fully indemnify TOTAL E&P UK (except in the event of wilful misconduct by TOTAL E&P UK Limited).

Operating Services

  • No claims against the other party in respect of property loss or consequential loss relating to performance under an agreement with the exception of wilful misconduct (up to a cap of £100M per occurrence).
  • Each party indemnifies and holds harmless the other party in respect of injury or death of employees in connection with any agreement.

These standard Terms and Conditions shall not constitute an offer or a legally binding arrangement between TOTAL and the enquirer nor obligate either party in any manner.  Any discussions upon such Terms and Conditions shall be on a 'subject-to-contract' basis unless and until a legally binding agreement is executed.