• Fleissen & Company Limited

Hydrocarbon Accounting and Loss Management

Monday 15 Apr 2024 - Thursday 18 Apr 2024

Count Down:

Hydrocarbon Accounting and Loss Management (HCALM)




This professional course covers hydrocarbon measurement, reconciliation, allocation, data management, inventory management, production planning, regulatory compliance, commercial analysis, reporting, and hydrocarbon loss control. It is designed to help participants gain deeper insights into hydrocarbon accounting issues and possible approaches to addressing them. The course is well-structured, incorporating essential inputs from various domains to effectively operationalize hydrocarbon accounting for upstream, midstream, and downstream petroleum operations.

Accurately tracking hydrocarbon streams and ownership is crucial for realizing the value of the oil and gas business. Hydrocarbon production data may originate from multiple sources with different equity holdings, as infrastructure sharing is a common practice in the petroleum industry. Accounting for hydrocarbon quantities from all contributing sources is essential for optimizing the financial performance of oil and gas assets. However, the functional requirements of the hydrocarbon accounting team extend beyond data handling. The updated course now includes hydrocarbon loss management, which is critical to the financial bottom line and the proper management of hydrocarbon resources. It is critical for oil and gas companies to understand their losses and the controls required for the management of those losses.

This course emphasizes the importance of the hydrocarbon accounting team understanding the science behind the data and its applications to ensure data quality. Additionally, the course assists other departments that utilize the reported data or provide data to the hydrocarbon accounting team in recognizing the criticality of the hydrocarbon accounting processes to the company's revenue profile.

The training materials are developed using international references such as the API Manual of Petroleum Measurement Standards (MPMS), ISO, and regulatory guidelines.




On completing the course, the participant should be able to:

·        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 fluids properties 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 third-party

·        Investigate, analyse and trend hydrocarbon losses and design control processes.










Introduction to hydrocarbon accounting and loss management

·      Why hydrocarbon accounting?

·      Understanding hydrocarbon accounting scope and workflow

·      Hydrocarbon loss management culture

One day



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

·         Maintenance—Calibration, proving, etc


Introduction to measurement uncertainty and measurement system audit

·         Introduction to measurement uncertainty

·         Audit principle

·         Case study



Overview static measurement

·         Shore tank calculation

·         Vessel/barge tanks fiscalization

One day



Hydrocarbon allocation  


·         Types of allocation

·         Formulation of an allocation scheme

·         Allocation calculation

o   Crude oil allocation case

·         Regulator's allocation method

One day




Hydrocarbon inventory management and nomination

·      Stock balancing

·      Managing nomination processes and communications

·      Scheduling and planning

·      Production planning— deferment rates, actuals, etc

·      Transport agreement ‑CTA/CHA

·      Production Reconciliation and Allocation Class Exercise


Hydrocarbon Loss management


·         Type of losses

·         Loss calculations & Case study

·         Hydrocarbon loss reduction in upstream operations

·         Emission reduction


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

·      Regulatory and stakeholders reporting

One day



Understanding commercial implications

·      Case study & Hands-on exercise


Hydrocarbon accounting and loss management best practices

·      Use of hydrocarbon accounting tools

·      Managing stakeholder

·      Hydrocarbon loss management best practices



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.