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MECHANISM
Thursday
21-Dec-2017
Crude oil pricing
Crude oil pricing varies from one Petroleum Policy to another and from
one Crude Oil Sale Agreement (COSA) to another.
• Dz is the zonal index which shall have the value of 63.33% for Zone III;
66.5% for Zone II, 69.66% for Zone I.
Apply sliding scale discounts to C&F crude oil price after floor & upto ceiling.
Marker Price Onshore Zone III* 63.33% of applicable C&F price $34.2
Conversion Factor assumed (MM Btu/bbl)
5.7
Zone III producer price for pipe line quality specification gas in US$/MMBtu
6
*Marker price for Onshore Zone II will be determined with 66.5% Applicable
percentage of C&F Price leading to a marker price of $ 35.91 and producer
price of $ 6.3
Marker price for Onshore Zone I will be determined with 69.66% Applicable
percentage of C&F Price leading to a marker price of $ 37.616 and producer
price of $ 6.6
Reference Crude Price greater than USD 45/bbl
Zone III price is equal to GPC + (RCP-RC45) x GPG x [(GPC - GP20) / (RC45 –
RC20)]
Zone III price (USD/MMBTU) = 3.00 + (60 - 45) x 0.20 x [(3.00 – 2.50)/ (45-20)]
Zone III price (USD/MMBTU) = 3.06