Petroleum Production Accounting in Norway

Transcription

1 Petroleum Production Accounting in Norway Presentation at the GGFR Workshop on hydrocarbon production accounting and flared gas volume measurement. oscow By Steinar Njå, Project Director, Norwegian Petroleum Directorate GGFR, oscow

2 Outline of the presentation Petroleum sector in Norway Legal framework The approval process Production monitoring Systems for measurement and data collection Procedures for allocation Data transfer, storage and retrieval Validation of data and processing Closing remarks GGFR, oscow

3 Resource overview as of 31 Dec Total resources approx. 13 billion Sm 3 o.e. 4.8 billion Sm 3 o.e produced 5.0 billion Sm 3 o.e. remaining proven resources 56 fields in production 12 fields PDO approved 56 discoveries About 260 projects for improved recovery in existing fields 3.4 billion Sm 3 o.e. undiscovered GGFR, oscow

4 Petroleum production from NCS Gass/Gas Kondensat/Condensate NGL Olje/Oil millioner Sm 3 o.e. million Sm 3 o.e GGFR, oscow

5 Gas Balance - Norwegian Continental Shelf GGFR, oscow Fuel&Flare Gas injection Resourcesr Reserves Historic export Billion Sm

6 Norwegian Petroleum Administration GGFR, oscow

7 Norwegian Petroleum Directorate Established Approx. 220 employees. Reporting to the inistry of Petroleum and Energy The NPD office building at Ullandhaug in Stavanger The Norwegian Petroleum Directorate shall contribute to creating the greatest possible values for society from the oil and gas activities by means of prudent resource management, based on safety, emergency preparedness and safeguarding of external environment. GGFR, oscow

8 ain roles of the NPD 1. Advisor to the inistry 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, oscow

9 Activity onitoring NPD 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 terms and agreements GGFR, oscow

10 Hierarchy of legislation Legally binding The petroleum Act Regulations to the petroleum Act Guidance Guidelines to the petroleum Act and associated regulations GGFR, oscow

11 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 inistry : - 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, oscow

12 Data and Information (Petr. Act 10-4) aterial 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 inistry or to anyone designated by the inistry. Such material and information shall be submitted in a format decided by the inistry 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, oscow

13 etering 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, oscow

14 easurement regulation basic features Legal framework: Regulations relating to measurement of petroleum for fiscal purpose and for calculation of CO 2 tax (measurement regulation). The regulation is vested in the Petroleum Act and the Petroleum Regulations. Basic features of the Norwegian regulatory system Internal 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. ore 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 and the CO2 Tax Act Section 7, cf. the Criminal Code Chapter 3a. GGFR, oscow

15 The Approval Process Advise inistry PDO evaluation Advise inistry Remaining resources Area evaluation Decommissioning Discovery Consept evaluation PDO Impact asessment Operation Cessation Impact asessment Attend lic.committees Evaluation of deposit Portefolio/area eval Identify alternatives Require studies PDO evaluation etering systems HS GGFR, oscow Production/flare permit Production data Fiscal metering Royalty/Area fee/ CO2 Field report Environmental issues

16 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, oscow

17 Tax returns The Reporting process - overview Oil sales Gas sales, daily balances Volumes (daily/batch) LicenseWeb* Volumes Operators/oil companies -easurement systems subject to regulations. -Internal control principle (management system). Gassco**? Partners Partners Petroleum Pricing Board Oil Taxation Office Norwegian Petroleum Directorate Volumes (daily) Volumes (monthly) CO2-reports (six monthly) Batch reports etering Group Production database (Oil, gas, flare, fuel,..) CO2 Taxation Office Errors Tax assessments External audits, inspections GGFR, oscow

18 Infrastructure and etering Oil Gas Oil GGFR, oscow

19 Allocation principles Allocation of ownership is always done on a mass per component basis: FIELD A FIELD A eas. fielda. ci All. fielda ci = x Tot. eas. Ter min al. ci eas. fielda. ci + eas. fieldb. ci S S eas. fieldb. ci All. fieldb. ci = x Tot. eas. Ter min al. ci eas. fielda. ci + eas. fieldb. ci TERINAL In cases where fluids are sold in energy or volume these values are, with agreed methods, convertet to mass for the sake of ownership allocation S GGFR, oscow

20 Production etering FLARE FUEL S WHAT DO WE EASURE ON BOARD A TYPICAL NORWEGIAN OFFSHORE PLATFOR? TEST SEPARATOR OR PF GAS OIL GAS TREATENT AND COPRESSION TO GAS PIPELINE Well streams by (intermittently) measuring gas oil and water flow rates from one by one well, using test separator or multiphase meter. FRO WELLS WATER DIESEL CONSUPTION OIL SEPARATION PROCESS WATER S TO OIL PIPELINE OR OFF- LOADING 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, oscow

21 Production etering FLARE WHAT REGULATES WHICH EASUREENTS? TEST SEPARATOR GAS FUEL GAS TREATENT AND COPRESSION S TO GAS PIPELINE 1.Fiscal measurements are regulated by the Petroleum easurement Regulations, vested in the Petroleum Act and the Petroleum Regulations. Enforcement is by NPD s Fiscal easurement team. OIL WATER OIL SEPARATION PROCESS DIESEL CONSUPTION WATER S FRO WELLS OF SAE OWNERSHIP P WELL OFDIFFERENT OWNERSHIP TO OIL PIPELINE OR OFF- LOADING GGFR, oscow

22 Production etering FLARE WHAT REGULATES WHICH EASUREENTS? TEST SEPARATOR GAS FUEL GAS TREATENT AND COPRESSION S TO GAS PIPELINE 1.Fiscal measurements are regulated by the Petroleum easurement Regulations, vested in the Petroleum Act and the Petroleum Regulations. Enforcement is by NPD s Fiscal easurement team. WATER OIL OIL SEPARATION PROCESS 2.easurements of fluids emitting CO2 by combustion is regulated by the Petroleum easurement regulations and the Act for Tax on Discharge of CO2 in addition to requirements in the Petroleum Act. Enforcement is by NPD s Fiscal easurement team. S DIESEL CONSUPTION WATER FRO WELLS OF SAE OWNERSHIP P WELL OF DIFFERENT OWNERSHIP TO OIL PIPELINE OR OFF- LOADING GGFR, oscow

23 Production etering FLARE WHAT REGULATES WHICH EASUREENTS? TEST SEPARATOR GAS FUEL GAS TREATENT AND COPRESSION S TO GAS PIPELINE 1.Fiscal measurements are regulated by the Petroleum easurement Regulations, vested in the Petroleum Act and the Petroleum Regulations. Enforcement is by NPD s Fiscal easurement team. WATER OIL OIL SEPARATION PROCESS 2.easurements of fluids emitting CO2 by combustion is regulated by the Petroleum easurement regulations and the Act for Tax on Discharge of CO2 in addition to requirements in the Petroleum Act. Enforcement is by NPD s Fiscal easurement team. FRO WELLS OF SAE OWNERSHIP P WELL OF DIFFERENT OWNERSHIP DIESEL CONSUPTION WATER S TO OIL PIPELINE OR OFF- LOADING 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, oscow

24 Production etering FLARE WHAT REGULATES WHICH EASUREENTS? TEST SEPARATOR GAS FUEL GAS TREATENT AND COPRESSION S TO GAS PIPELINE 1.Fiscal measurements are regulated by the Petroleum easurement Regulations, vested in the Petroleum Act and the Petroleum Regulations. Enforcement is by NPD s Fiscal easurement team. WATER OIL OIL SEPARATION PROCESS 2.easurements of fluids emitting CO2 by combustion is regulated by the Petroleum easurement regulations and the Act for Tax on Discharge of CO2 in addition to requirements in the Petroleum Act. Enforcement is by NPD s Fiscal easurement team. FRO WELLS OF SAE OWNERSHIP P WELL OF DIFFERENT OWNERSHIP DIESEL CONSUPTION WATER S TO OIL PIPELINE OR OFF- LOADING 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 (P), regularly calibrated against the test separator. This will make both the P and the test separator fiscal as for 1) above. GGFR, oscow

25 Daily Production Reporting DPR - Daily Production Reporting Intern al ne tw ork S O IL n e t w o r k DPR - User interface Pr o du ct ion DB D aily p rod uctio n an d ac tivity da ta I m p o r t X L transformation QC /V alidation H TL transformation P ublishing Loggin g Re -ru n D aily pr odu ction acitivity rep ort an d LW comm unication server Copyright 2008 TietoEnator Corporation Based on XL according to WITSL stan dards Based on Web Services Secu re commu nication based on the O il industry recommen dations and best practices Tested and in production 15 GGFR, oscow

26 onthly 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 manner Diskos is The Norwegian Petroleum Directorate s official database for Production & Sales information The NPD loads information on behalf of the oil companies using standardised input formats (copex) sent by mail from the operators, about 70 files per month Companies will load information directly into the database in the future GGFR, oscow

27 Diskos Production Data odule onthly reported data available in one database. StatoilHydro A quality controlled source of production and sales information Data is stored only once, used by many Output can be tailored to suit a variety of needs An efficient tool for the use of authorities Current situation NPD ConocoPhillips Exxonobil Diskos PetroBank Statistics Norway PE Press release etc GGFR, oscow Petroleum Tax Office

28 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, oscow

29 Usage of the data Who: NPD Oil companies inistry of Petroleum and Energy - PE Oil Taxation Office Statistics Norway - SSB isc. agazines, Students osv For Press 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, oscow

30 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, oscow

31 Publication of production data Data increasingly being made available on NPD factpages: Automated publication based on extraction from the Diskos database and internal NPD database: SABA Eases off the number of direct requests to the NPD for production data figures All net and gross production figures are now available : 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, oscow

32 Closing remarks Norwegian system for Production Accounting has been developed over time based on needs and technology ethodology 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, oscow

33 Благодарю за внимание! GGFR, oscow