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When oil and gas producers use shared production or transportation facilities there is a requirement to allocate net hydrocarbons between entrants to the shared facilities.

Oil Rig

SGS is at the forefront of allocation system development offering embedded equation of state calculations, sensitivity analysis, loss exposure and statistical analysis packages. This allocation is undertaken in accordance with agreed allocation procedures and is typically based on the quality and quantity of hydrocarbons (plus water or other contaminants) added to the shared facilities. The quantities of hydrocarbons reported may be used for calculating royalty payments, taxation payable or determining productivity from different fields. This is often referred to as allocation measurement and takes place using dynamic measurement.

Comprehensive range of services

SGS provides a comprehensive range of hydrocarbon allocation services including:

  • Development of agreements
  • Allocation modeling
  • Exposure analyses
  • Third-party liaison

We ensure that our customers’ data is accurate, reported on time and qualified by an independent third party. Additionally, SGS assures both your partners and the regulatory bodies that all measurements and revenue issues are completed in a professional manner.

Whether for custody transfer measurement or allocation measurement metering equipment should be considered the cash register of a project, any incorrect measurement under or over presents significant loss or liability for the operator. Call us to find out more about SGS’s Hydrocarbon Allocation services.