Allocation measurement: the underestimated stepchild

Allocation occurs at many different places in exploration and production. Allocate which parts of the reservoir have produced the hydrocarbons, which is important for reservoir management, when the reservoir has several different layers and when the reservoir extends over different concession areas. Allocation is crucial when shared production lines are used, as is common off-shore. Allocation is important to determine which hydrocarbons are used for “own use”. In many cases, the financial implications of allocation are underestimated.

In exploration and production, the allocation of the produced hydrocarbons is crucial for the business. Allocation plays a role in reservoir management as a reservoir can have different producing layers (with different compositions!) and may have different owners when it extends across different concessions. Reservoir management is necessary to maximize the ultimate recovery from a reservoir, something which is getting more and more important, and to split the revenues over different owners.

Allocation also plays a crucial role when production lines are shared (which e.g. often happens with off-shore operations) as the financial implications can be large. Allocation also is necessary for “own use’” hydrocarbons to realize a honest share of the costs.

Allocation metering has therefore large financial implications, but the number of measurement points is extensive (because it is scattered over the evacuation system) and usually it involves smaller amounts than with fiscal / custody transfer measurements. Therefore it is important to choose the right equipment to balance the costs of metering and the (financial) risks involved. Hint B.V. has the experience and in-depth knowledge to provide independent advice for allocation measurement, processing and data-base management.

Benefits

  • Short-term and long term financial benefits.
  • Enhanced ultimate recovery from reservoirs.
  • Honest share of revenues.
  • Honest share of costs
  • Balancing costs of metering and financial risks.