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Component documentation Primary Product Allocation Processing 

Purpose

Primary product allocation processing allocates either gas, oil, or condensate major products from sales points to the termination point. The termination point is either a well completion or measurement point, and is the furthest upstream node in the network structure.

There are three steps involved in primary product processing:

  1. allocation to marketing groups
  2. allocation to the contract level
  3. allocation from the contract level to working interest owners.

Further, there are five methods that can be used to carry out the allocation:

  • Division Order Sales (mostly used for oil networks)
  • Sales Point Originated (mostly used for gas networks)
  • Manual Entry Equals Production
  • Manual Entry Unrestricted
  • None - Usually used in simple plant functionality for a company that wants to skip primary product allocation

All of the methods allocate contract results to the individual working interest owners marketing together on the given contract(s). For oil and condensate products, the allocation is volume based, while for gas the allocation can be either volume or energy based.

 

Division Order Sales

Sales Point Originated

Sales volumes are entered through Contractual Allocation

No

Yes

Owners can be kept whole

Yes

Yes

Non-allocated networks are allowed

Yes

No

ACR and Marketing Group can be assumed

Yes

No

Integration

In order to carry out primary product allocation processing, the following four prerequisites must be met. (Note: The first three prerequisites are optional when the Division Order Sales Method is used with the Assume ACR option.)

  1. Contracts must be tied to sales points with the Measurement Point Transporter Cross Reference transaction.
  2. Marketing groups must be created.
  3. Contracts must be tied to termination points using the Allocation Cross Reference transaction.
  4. A Division of Interest -Well Completion Cross Reference must be set up in the Ownership application area.

See also:

Creating a MP / WC Transporter Cross Reference

Creating a Marketing Group Assignment

Creating an Allocation Cross Reference

Creating a Division of Interest - Well Completion Cross Reference

 

 

 

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