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Oil or Gas Production Allocation and Reporting - an on-line solution Paper to be presented at IORS 98 by Lewis Richards - Software Manager (Ocean Technical Systems Ltd.)
As applied to the Oil and Gas Industry, allocation refers to the splitting of custody transfer quantities of oil, gas, condensate and water between multiple sources and destinations. The rules of allocation are set by government bodies, who legislate on revenue taxation and reservoir management (PPRS/Blue Book in the UK), and by sales contracts drawn up by the parties involved in the buying, selling and production of oil and gas. Examples of allocation are:
Where field metered figures are allocated back to individual wells, and groups of wells (e.g. Reservoirs and Petroleum Revenue Tax (PRT) Areas in the UK). Closely associated with this are requirements for well testing and pipeline monitoring.
Where sales metering figures are allocated back to individual fields (commingled prior to sales metering), and to individual partners within each field. Closely associated with this are requirements for handling 'nominations' (orders), and 'attribution' (the lending and borrowing between fields). OceanTech - an overview OceanTech has an extensive track record in real-time telemetry and SCADA systems, and it is from this background that we approached the requirements of Production and Sales Allocation, rather than from a management information background. This unique approach has resulted in an on-line solution. Over the last 10 years OceanTech have developed a sophisticated and all encompassing computer based system for handing the monitoring and reporting requirements associated with complex Oil and Gas Production and Sales Allocation Systems. This development has been carried out in partnership with Arco British Ltd. (ABL), and has been driven by the practical needs of ABL and other customers. The PSACS (Production Sales Allocation Computer System) software product is the results of this development. OceanTech has extensive experience of the contracts that control the allocation process, and often act as consultants in the contract negotiation phase. The Current Approach Traditionally allocation requirements are handled by numerous independent systems:
Stand-alone Metering Databases interfacing with flow computers, providing processing and reporting of metering information.
Typically DCS or SCADA based systems monitoring and reporting on well production and testing.
Typically Database or Spreadsheet applications inputting metering and production information (often manually) and processing and reporting sales and management information.
Specialised applications producing sales invoices.
Hard copy reports collated, photocopied, posted or faxed. The New Approach (an on-line solution) Based on a background of real-time data acquisition systems, OceanTech approached the requirements of Oil and Gas Allocation with an integrated on-line solution in mind. Also our customers were looking for improvements on the traditional approach:
The central requirement of sales and management reporting were extended into the areas traditionally handled by metering, production monitoring, and accounting systems:
With the availability of real-time metering and production data, PSACS performs predictive allocation processing, and provides users with semi real-time information for the tracking of imports and exports. PSACS provides sophisticated report transmittal via:
Thus totally avoiding the need for administration effort. These elements combine to provide an integrated on-line solution to Gas and Oil allocation and reporting. Architecture (a standard IT approach) PSACS was developed with the following basic requirements:
This lead to the development of an integrated system based on:
In effect, a standard IT approach, involving no specialised hardware or software tools. Remote Management (going even further) Having established an integrated network based system, the next step was simple, but extremely powerful:
PSACS allows remote management of metering equipment (metering databases, flow computers, chromatographs...) from any point on the LAN/WAN. Where metering equipment is located at remote / unmanned locations (often offshore), the ability to remotely manage the equipment is very beneficial, and significantly reduces costs. Traditional metering equipment, as well as PSACS's integrated metering database, can be controlled in this way.
Making use of standard dial-up networking, system managers can access the system remotely, to monitor operations and to resolve any problems.
OceanTech can maintain and upgrade the system (even offshore elements) from the factory, and provide 24 hour instant on-line support, thus avoiding the cost and delays of traveling to site. Summary (the benefits) An integrated on-line production allocation and reporting system provides extensive benefits over the traditional approach:
Helping operators to meet targets - avoid under / over delivery penalties. Operate more effectively.
Minimise manpower and mistakes (human error). Increase accuracy and timeliness of information.
Access critical production sales and metering data any where - any time.
Simple and fast reaction to changing needs.
Reduce maintenance costs.
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