petroleum production accounting in norwaysiteresources.worldbank.org/extggfr/resources/stein… ·...
TRANSCRIPT
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
GGFR, Moscow 16.12.08
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
GGFR, Moscow 16.12.08
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
GGFR, Moscow 16.12.08
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
GGFR, Moscow 16.12.08
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
GGFR, Moscow 16.12.08
Norwegian Petroleum Administration
GGFR, Moscow 16.12.08
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
GGFR, Moscow 16.12.08
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
GGFR, Moscow 16.12.08
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
GGFR, Moscow 16.12.08
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
GGFR, Moscow 16.12.08
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
GGFR, Moscow 16.12.08
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
GGFR, Moscow 16.12.08
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.”
GGFR, Moscow 16.12.08
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.
GGFR, Moscow 16.12.08
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
GGFR, Moscow 16.12.08
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.
GGFR, Moscow 16.12.08
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)
GGFR, Moscow 16.12.08
Infrastructure and Metering
Oil
Oil
Gas
GGFR, Moscow 16.12.08
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
GGFR, Moscow 16.12.08
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
GGFR, Moscow 16.12.08
Production Metering
M
M
M
GAS TREATMENT
AND COMPRESSION
M
TEST SEPARATOR
WATER
OIL
GAS
OIL SEPARATION PROCESS
S
S
TO GAS PIPELINE
TO OIL PIPELINEOR OFF-
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.
GGFR, Moscow 16.12.08
Production Metering
M
M
M
GAS TREATMENT
AND COMPRESSION
M
TEST SEPARATOR
WATER
OIL
GAS
OIL SEPARATION PROCESS
S
S
TO GAS PIPELINE
TO OIL PIPELINEOR OFF-
LOADING
WATER
FUELM
FROM WELLSOF SAME
OWNERSHIP
FLAREM
M
DIESEL CONSUMPTION
MPM
WELL OF DIFFERENTOWNERSHIP
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.
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.
GGFR, Moscow 16.12.08
Production Metering
M
M
M
GAS TREATMENT
AND COMPRESSION
M
TEST SEPARATOR
WATER
OIL
GAS
OIL SEPARATION PROCESS
S
S
TO GAS PIPELINE
TO OIL PIPELINEOR OFF-
LOADING
WATER
FUELM
FROM WELLSOF SAME
OWNERSHIP
FLAREM
M
DIESEL CONSUMPTION
MPM
WELL OF DIFFERENTOWNERSHIP
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.
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.
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.
GGFR, Moscow 16.12.08
Production Metering
M
M
M
GAS TREATMENT
AND COMPRESSION
M
TEST SEPARATOR
WATER
OIL
GAS
OIL SEPARATION PROCESS
S
S
TO GAS PIPELINE
TO OIL PIPELINEOR OFF-
LOADING
WATER
FUELM
FROM WELLSOF SAME
OWNERSHIP
FLAREM
M
DIESEL CONSUMPTION
MPM
WELL OF DIFFERENTOWNERSHIP
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.
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.
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.
GGFR, Moscow 16.12.08
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
GGFR, Moscow 16.12.08
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
GGFR, Moscow 16.12.08
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
GGFR, Moscow 16.12.08
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.
GGFR, Moscow 16.12.08
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…
GGFR, Moscow 16.12.08
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.
GGFR, Moscow 16.12.08
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.
GGFR, Moscow 16.12.08
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
GGFR, Moscow 16.12.08
Благодарю за внимание!
www.npd.no