Function documentationDivision of Interest

 

The division of interest (DOI) specifies the owners involved in a particular production network or in a sub-object of a production network. It also specifies the interest type and the gross and net interest that each owner is entitled to. In addition, the bearer groups within a division of interest specify the owners who contribute to the royalty share and their contribution percentages. The DOI information is used in the transfer of ownership and ownership allocation processes.

Prerequisites

  • You have defined the following in Customizing:

    Ownership roles under Start of the navigation path Production Next navigation step Production Network Next navigation step Ownership Next navigation step Define Ownership Role End of the navigation path

    Interest types under Start of the navigation path Production Next navigation step Production Network Next navigation step Ownership Next navigation step Define Interest Type End of the navigation path

    Media for object links under Start of the navigation path Production Next navigation step Production Network Next navigation step Network Objects Next navigation step Define Media for Object Links End of the navigation path

    Number ranges for DOIs under Start of the navigation path Production Next navigation step Production Network Next navigation step Ownership Next navigation step Define Number Ranges for Division of Interest End of the navigation path

  • You have created concessions in the Oil & Gas Entities workset.

  • You have created ownership vendors and associated the ownership roles to these vendors using the Process Business Partner service.

Features

For a DOI you can define details such as the gross revenue interest (GRI), net revenue interest (NRI), bearer group, and royalty calculation method. You can additionally check in, check out, and cancel a checked-out DOI.

  • 'Check in' specifies that the DOI can be used by further accounting processes.

  • 'Check out' specifies that you can make changes to the DOI.

  • Cancel specifies that the changes made to the checked out DOI can be canceled.

Activities

To create a division of interest proceed as follows:

  1. Define the DOI ID type, company code, concession, DOI description, medium and the effective date in the initial screen and choose Continue.

  2. On the Create Division of Interest screen, select the relevant authorization group.

  3. On the Division of Interest tab page:

    Go to the DOI Items section and enter the required information

    Note Note

    • If the interest type is selected as a non-working interest owner, then the bearer group must be defined. You can define this setting in the Customizing for ownership role.

    • If you select the calculation type GRI you can enter NRI for a working interest and royalty interest owner. GRI is calculated automatically when you choose Calculate.

    • If you select the calculation type NRI you can enter GRI for a working interest owner and NRI for a royalty interest owner. NRI is calculated automatically when you choose Calculate

    End of the note.

    Based on the calculation type and calculation method selected, the details are displayed in the Details of Calculation Method section.

  4. On the Define Bearer Group tab page:

    Define the bearer group type, bearer group, description, start and end date in the Define Bearer Group section.

    Define the owner, owner name, interest type, sequence and the burden share percentage in the Burden Sharing section.

    Note Note

    The bearer group and the burden share percentage must be defined for a royalty interest owner.

    The burden share percentage must always be 100 percent.

    End of the note.
  5. Save the details entered.