• Fleissen & Company Limited

Hydrocarbon Accounting and Management

Monday 18 Mar - Thursday 21 Mar

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Course Overview

This professional course covers hydrocarbon measurement, reconciliation, allocation, data management, inventory management, production planning, commercial analysis, and reporting. The course is designed to help the participants gain deeper insights into hydrocarbon accounting issues and possible approaches to tackling the issues. The course is well structured and covers all the domain input needed to operationalise effective hydrocarbon accounting for upstream, midstream, and downstream petroleum operations.

Accurate tracking of hydrocarbon streams and ownership is essential to the value realisation of the oil and gas business. Hydrocarbon production data may originate from many sources with different equity holdings since infrastructure sharing is standard practice in the petroleum industry. Accounting for hydrocarbon quantities from all the contributing sources is essential for the optimal financial performance of oil and gas assets. But the functional requirement of the hydrocarbon accounting team goes beyond just handling data. This course emphasises why the hydrocarbon accounting team should understand the science behind the data and its uses to ensure data quality. The course also helps other departments that use the data reported or those who supply data to the hydrocarbon accounting team to see the criticality of the hydrocarbon accounting processes to the company's revenue profile. 

Expected learning outcomes

On completing the course, participants should be able to:

•  Analyse production data and carry out data validation correctly

•  Produce a timely and accurate production allocation report that is traceable and auditable

•  Effectively engage metering engineers, production operation, and subsurface team to ensure consistent data reporting

•  Analyse the effect of third-party injection on allocation results and make suggestions to relevant departments

•  Produce accurate oil and gas nominations consistent with overall company objectives

•  Analyse emission allocation and produce a report for facility emissions to meet regulatory requirements

•  Analyse sources of uncertainty in production allocation and loss accounting, especially in commingled production involving the third party


Course Modules







Introduction to hydrocarbon accounting business process

Why hydrocarbon accounting? Understanding hydrocarbon accounting scope



Overview of oil and natural gas measurement system

Measurement classification/hierarchy, metering technologies, secondary measurement (temperature, pressure, level), liquid and gas analysers—BS&W, API, gas density, composition, etc. Flow computers and maintenance—Calibration, proving, etc


Overview static measurement

Shore tanks and marine vessel tanks fiscalization



Cause of mismeasurement and data validation

Introduction to measurement uncertainty. How measurement uncertainty affects allocation—case studies to be shared. Data validation and Reconciliation (DVR) demonstration and case study


Hydrocarbon allocation


Types of allocation, formulation of the allocation scheme, allocation calculation (Crude oil allocation case and Gas and NGL allocation case). Regulator’s allocation method



Hydrocarbon inventory management and nomination

Stock balancing, managing nomination processes and communications, contract and billing, scheduling, and planning. Production planning— deferment rates, actuals, etc. Transport agreement ‑CTA/CHA


Emission accounting


Flare gas and emission accounting produced water accounting and vent gas reporting


Managing and reporting data

Sources of data, data analysis—verification & surveillance, data security, data historian and database management. Managing the reporting process—types of report and regulatory and stakeholder reporting



Understanding commercial implications 

Understanding of commercial inputs, commercial calculations, and royalty determination


Hydrocarbon accounting tools

A discussion of the use and limitation of MS Excel. Discussion of traditional legacy hydrocarbon accounting software. Demo of the following software: Cloud-based system and Vali—an advanced DVR software for mass balance


Stakeholder management and hydrocarbon accounting best practices 

Management of Regulator’s requirements, third-party injectors, and pipeline operators. Discussion of best practices for achieving efficient hydrocarbon accounting and reporting

Who should attend?

The course is suitable for production accountants, process engineers, metering engineers, production engineers, reservoir engineers, regulators, pipeline schedulers, and commercial people with oil and gas companies.

Delivery method

The course will be delivered using modern methods, including presentation, discussions, case study analysis, and simple calculations will be implemented in MS excel flowsheet.