Petroleum Production Accounting in Norwaysiteresources.worldbank.org/EXTGGFR/Resources/Stein… ·...

GGFR, Moscow 16.12.08

Petroleum Production Accounting in Norway

Presentation at theGGFR Workshop on hydrocarbon production accounting and

flared gas volume measurement. Moscow 16-17.12.08

BySteinar Njå, Project Director,

Norwegian Petroleum Directorate


Outline of the presentation

Petroleum sector in NorwayLegal frameworkThe approval process Production monitoring

Systems for measurement and data collectionProcedures for allocationData transfer, storage and retrievalValidation of data and processing

Closing remarks


Resource overview as of 31 Dec. 2007

Total resources approx. 13 billion Sm3 o.e.

4.8 billion Sm3 o.e produced

5.0 billion Sm3 o.e. remaining proven resources

56 fields in production12 fields PDO approved56 discoveriesAbout 260 projects for improved recovery inexisting fields

3.4 billion Sm3 o.e. undiscovered


Petroleum production from NCS

20120

50

100

150

200

250

300

1971 1980 1989 1998 2007

mill

ione

r Sm

3 o.e

.

mill

ion

Sm

3 o.e

.

Gass/GasKondensat/CondensateNGLOlje/Oil


Gas Balance - Norwegian Continental Shelf

0

30

60

90

120

150

180

210

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

Bill

ion

Sm3

Fuel&FlareGas injectionResourcesrReservesHistoric export


Norwegian Petroleum Administration


Norwegian Petroleum Directorate

Established 1972. Approx. 220 employees.

Reporting to the Ministry of Petroleum and Energy

The Norwegian Petroleum Directorate shall contributeto creating the greatest possible values for societyfrom the oil and gas activities by means of prudentresource management, based on safety, emergencypreparedness and safeguarding of externalenvironment.The NPD office building at Ullandhaug in Stavanger


Main roles of the NPD

1. Advisor to the Ministry

2. Overview of facts and communication of facts

3. Promote realisation of full resource-potential

4. Develop framework and execute

5. Follow-up activity

6. Facilitate efficient industry processes


Activity MonitoringNPD is monitoring to secure:

• Prudent exploration, development and depletion of Norwegian petroleum resources

Prerequisite for monitoring:• Transparency and openness; easy access to information• Authority

Information provided by:• Data and reports from licensee (In accordance with regulations and agreements)• Attendance as observer in license meetings

Auditing normally performed only to verify compliance with termsand agreements


Hierarchy of legislation

The petroleum Act

Guidelines to the petroleum Act

and associated regulations

Regulations to the petroleum Act

Legall

y bind

ing

Guidan

ce


Gas flaring and venting regulations (Petr. Act 4-4)

“Flaring in excess of the quantities needed for normal operational safety shall not be allowed unless approved by the Ministry” :

- Associated gas utilisation required to get authority approval of Plan for Development and Operation

- Annual gas flaring permits

- Avoid waste of petroleum and reservoir energy

- Cold venting is not in accordance with the principle of environmentally prudent petroleum production


Data and Information (Petr. Act 10-4)

“Material and information which the licensee, operator, contractor etc. possesses or prepares in connection with planning and implementation of petroleum activities pursuant to this Act shall be available in Norway and may be required to be submitted free of charge to the Ministry or to anyone designated by the Ministry. Such material and information shall be submitted in a format decided by the Ministry to the extent this is deemed reasonable. ”

NPD is entitled to all information the oil companies have regarding their activity in Norway.The Norwegian Petroleum Act allows NPD to formulate detailed routines for reporting.NPD has observer status in all licence committees


Metering of petroleum produced and sold(Petr. Reg. Sect. 27)

“The licensee shall meter and analyse petroleum produced, including petroleum that has been sold, in accordance with generally accepted procedures. The equipment and the procedures shall be approved by the Norwegian Petroleum Directorate.”

“The total monthly production and injection volumes of the field shall be apportioned to each individual well on a monthly basis according to recognized norm.”


Measurement regulation – basic features

Legal framework:Regulations relating to measurement of petroleum for fiscal purpose and for calculation of CO2 tax (measurement regulation).The regulation is vested in the Petroleum Act and the Petroleum Regulations.

Basic features of the Norwegian regulatory systemInternal Control Principle: Anyone who conducts or participates in petroleum activities, shall comply with legal provisions, including regulatory decisions which are made pursuant to the Petroleum Act. More specifically, this duty requires such parties to actively seek to bring identified discrepancies into compliance.If exemption is required, NPD has authority to grant exemption (§ 33).

Violation of regulations or of decisions made pursuant to the regulations shall be punishable as stated in the Petroleum Act Section 10-17 and the CO2 Tax Act Section 7, cf. the Criminal Code Chapter 3a.


Discovery Conseptevaluation

PDOImpact asessment

Operation CessationImpact asessment

Attend lic.committeesEvaluation of depositPortefolio/area evalIdentify alternativesRequire studies

PDO evaluationMetering systemsHMS

Advise MinistryPDO evaluation

Production/flare permitProduction dataFiscal meteringRoyalty/Area fee/ CO2Field reportEnvironmental issues

Advise MinistryRemaining resourcesArea evaluationDecommissioning

The Approval Process


Supervision activity: Policy instruments

There is a continuous dialogue between the NPD and the players on the Norwegian shelf.

This dialogue is a means of influencing decisions/actions, and it is a central element in our supervision strategy.

If the dialogue is unsuccessful, we can give notice of orders, and then orders.


The Reporting process - overview

Production database(Oil, gas, flare, fuel, ..)

MeteringGroup

LicenseWeb*

Operators/oil companies-Measurement systems subject to regulations.-Internal control principle(management system).

Norwegian Petroleum DirectorateGassco**?

Volumes (daily/batch)

Petroleum Pricing Board

Oil sales Oil Taxation Office

Gas sales,daily balances

CO2 Taxation Office

Tax assessments

Errors

External audits, inspections

Tax returns

Partners

Partners

CO2-reports(six monthly)

Batch reports

Volumes(monthly)

Volumes

Volumes(daily)


Infrastructure and Metering

Oil

Oil

Gas


Allocation principles

Allocation of ownership is always doneon a mass per component basis:

cialTerMeasTotcifieldBMeascifieldAMeas

cifieldAMeascifieldAAll xM

MMM

M .min......

... +

=

FIELD A FIELD A

M

S

M

S

TERMINAL

M

S

cialTerMeasTotcifieldBMeascifieldAMeas

cifieldBMeascifieldBAll xM

MMM

M .min......

.... +=

In cases where fluids are sold in energy or volume these values are, with agreed

methods, convertet to mass for the sake ofownership allocation


Production Metering

M

M

M

GAS TREATMENT

AND COMPRESSION

M

TEST SEPARATOR

OR MPFM

WATER

OIL

GAS

OIL SEPARATION PROCESS

S

S

TO GAS PIPELINE

TO OIL PIPELINEOR OFF-

LOADING

WATER

FUELM

FROM WELLS

FLAREM

M

DIESEL CONSUMPTION

WHAT DO WE MEASURE ON BOARD A TYPICAL NORWEGIAN OFFSHORE PLATFORM?

•Well streams by (intermittently) measuring gas oil and water flow rates from one by one well, using test separator or multiphase meter.

•Export of gas and liquid, to pipeline or tanker loading. These can be for custody transfer or ownership allocation. In both cases they have to comply with “fiscal”requirements.

•Fuel gas consumption•Gas to flare•Diesel consumption


Production Metering

M

M

M

GAS TREATMENT

AND COMPRESSION

M

TEST SEPARATOR

WATER

OIL

GAS


S

S

TO GAS PIPELINE


LOADING

WATER

FUELM

FROM WELLSOF SAME

OWNERSHIP

FLAREM

M

DIESEL CONSUMPTION

MPM

WELL OFDIFFERENTOWNERSHIP

WHAT REGULATES WHICH MEASUREMENTS?

1.Fiscal measurements are regulated by the Petroleum Measurement Regulations, vested in the Petroleum Act and the Petroleum Regulations. Enforcement is by NPD’s Fiscal Measurement team.


Production Metering

M

M

M

GAS TREATMENT

AND COMPRESSION

M

TEST SEPARATOR

WATER

OIL

GAS


S

S

TO GAS PIPELINE


LOADING

WATER

FUELM

FROM WELLSOF SAME

OWNERSHIP

FLAREM

M

DIESEL CONSUMPTION

MPM

WELL OF DIFFERENTOWNERSHIP



2.Measurements of fluids emitting CO2 by combustion is regulated by the Petroleum Measurement regulations and the Act for Tax on Discharge of CO2 in addition to requirements in the Petroleum Act.Enforcement is by NPD’s Fiscal Measurement team.


Production Metering

M

M

M

GAS TREATMENT

AND COMPRESSION

M

TEST SEPARATOR

WATER

OIL

GAS


S

S

TO GAS PIPELINE


LOADING

WATER

FUELM

FROM WELLSOF SAME

OWNERSHIP

FLAREM

M

DIESEL CONSUMPTION

MPM





3.Well and reservoir allocation measurements are regulated by the Petroleum Regulations and are reported to and monitored by NPD’s Continental Shelf Data team.


Production Metering

M

M

M

GAS TREATMENT

AND COMPRESSION

M

TEST SEPARATOR

WATER

OIL

GAS


S

S

TO GAS PIPELINE


LOADING

WATER

FUELM

FROM WELLSOF SAME

OWNERSHIP

FLAREM

M

DIESEL CONSUMPTION

MPM





3.Well and reservoir allocation measurements are regulated by the Petroleum Regulations and are reported to and monitored by NPD’s Continental Shelf Data team.

4.One or more wells with different ownership can be measured by a multiphase meter (MPM), regularly calibrated against the test separator. This will make both the MPM and the test separator “fiscal” as for 1) above.


Daily Production ReportingCo

pyrig

ht 2

008

Tiet

oEna

tor C

orpo

rati

on

1 5

D P R - D a il y P r o d u c t io n R e p o r ti n g

• B a sed on XM L a c c o r ding t o W ITS M L s t a n da r ds• B a sed on W eb Se rv ic es• S ec u re com m u n ic a tion ba sed on t he O il ind us t r y r ec om m en da t ions a nd bes t

p r a ct ic e s• T es t e d a nd in p r oduc t ion

Pr o du ct ionD B

X M L trans fo rm ationQC /V a lida tion

H TM L trans form ationP ubl is h ing

Logg in gRe-run

D a i ly p rod uc tio nan d ac tiv i ty da ta

D ai ly pr odu c tion an d ac i ti v i ty rep ort

S O IL n e t w orkI n t e rn a l ne tw ork

D P R - Us er in t er f a ce

Import

L W c o m m u n ic a ti o n s e r ve r


Monthly production figures

All production figures are reported on a monthly basis

PetroBank software ensures that all data is stored and distributed in a secure and confidential mannerDiskos is The Norwegian Petroleum Directorate’s official database for Production & Sales informationThe NPD loads information on behalf of the oil companies using standardised input formats (copex) sent by mail from the operators, about 70 files per monthCompanies will load information directly into the database in the future


Diskos Production Data ModuleMonthly reported data available in one database.

A quality controlled source of production and sales informationData is stored only once, used by manyOutput can be tailored to suit a variety of needsAn efficient tool for the use of authorities

StatoilHydro

ConocoPhillips

ExxonMobil

NPD

DiskosPetroBank

Statistics Norway

MPE

Petroleum Tax OfficePress release etc

Current situation


Data Stored in the Database

Production:Per well, installation and field. (gross figures) Allocated saleable figures per field. (net figures)Use and flare of gas per installation.

Injection:Per well, installation and field.

Stock:Figures at month end per sales point / terminal.Total figures per field and owner.Partly loaded tankers included

Sale:Gas per sales point/terminal split according to seller or buyer.Oil, NGL and condensate per boat.


Usage of the data

Who:NPDOil companiesMinistry of Petroleum and Energy - MPEOil Taxation OfficeStatistics Norway - SSBMisc. Magazines, Students osv…

ForPress releases and monthly/yearly reports, fact sheets….General overview of the NCS, from well to sales point.Resource accounts – one source.Coordinate further reporting to government offices and others…


Reporting process and data quality

Extensive collaboration with the companies

Standardised reporting format

Easy

Reported data are used in the licences for other purposed than just reporting to the authorities. Enhances the status of the reporting and the quality of information.


Publication of production data

Data increasingly being made available on NPD factpages: www.npd.no

Automated publication based on extraction from the Diskos database and internal NPD database: SAMBAEases off the number of direct requests to the NPD for production data figures

All net and gross production figures are now available :

http://odintra/wwwrdiv/norwegian_shelf_fact_pages_confidential/cnf/en/profile/prod/total_ncs.ht

A complete production history can also be downloaded as a .csv file for input into other programmes, spreadsheets etc.


Closing remarks

Norwegian system for Production Accounting has been developed over time based on needs and technology

Methodology and system based on international standards and in close cooperation with the industry and other North Sea authorities

Based on mutual trust, openess and transparency

Part of the general data information systems established for the Norwegian Continental Shelf


Благодарю за внимание!

www.npd.no

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