Oil & Gas Exploration and Production Services > Pipeline Fiscal Allocation

Crude Oil, Natural Gas Allocation Services

Audited oil field and natural gas production allocation services for fiscal pipeline revenues

Intertek provides a comprehensive program of allocation sampling and testing for oil and gas producers. By determining the true value of a facility’s production, accurate measurement produces financial rewards many times the service investment. Intertek is operates pipeline allocation programs for major oil and gas clients in key locations across the world.

Intertek is the world's foremost expert in providing accurate laboratory analysis of physical properties of crude oil, natural gas and gas condensate, including calculations for gas-to-oil Ratio and production shrinkage factors. Intertek laboratory procedures meet requirements established by API, GPA, ISO and ASTM

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The return on investment benefits from pipeline allocation programs can be significant. The process of allocating ownership and the monetary value of hydrocarbon fluids being produced by multiple owners is dependent on the proper determination of Gas-to-Oil Ratios (GOR) and volumetric shrinkage (shrink factor) and product yields.

Comingled Production:

• On production platforms that co-mingle production from more than one source, analyzing the physical properties of the departing oil and gas streams will determine the volumes produced from the various sources. Typical pipeline allocation programs run by Intertek for joint production and product co-mingling clients are audited on a regular basis to verify accuracy and revenue allocation.

Pipeline production allocation programs:

• Allocation testing is necessary for joint venture production platforms. Intertek provides independent and reliable testing services for all parties. Analysis of the production stream results in accurate distribution of production volumes. Accurate data will result in accurate revenue distribution and will stand up to auditing reviews.
  
  Intertek E&P laboratory analysis yields substantial potential revenue enhancement to production, making crude oil and natural gas analysis and allocation testing inexpensive and a good business decision in light of high pricing for petroleum and natural gas.
  
  The testing data collected by measurement of the physical properties of the crude oil and flash gases can be put into a calculation that measures the amount of usable product that is produced from a well.

Ensuring allocation accuracy:

• Production samples taken at high pressure will become two-phase (oil and gas) if the pressure is not maintained. High pressure (1800 PSI) piston cylinders developed for this type of sampling allows Intertek to maintain sample integrity throughout the testing process.
  The oil and gas from the production separator and GOR apparatus can be analyzed by Intertek for their composition.
  
  Intertek provides an equation of state model of the crude through all stages of platform processes based on the physical property data accumulated in testing. This data allows more exact allocation of royalty and revenue.
  
  The analytical data obtained is used to optimize platform processes. The data produced in allocation testing can also be used in simulation programs to model all phases of production operations, including the variables from different inlet crude combinations, multi-stage flashing and projecting product quality.