HM 96. Guidelines for the allocation of fluid streams in oil and gas production

Overview:

Allocation is a term used to describe the system by which ownership of oil, gas, gas liquids and produced water is determined and tracked from the point of production to a point of sale or discharge. Allocation systems therefore have a direct impact on revenue and often involve several business areas, which may be defined in contracts, operating agreements or regulations. The term ‘allocation’ is also known as hydrocarbon accounting, hydrocarbon value realisation, product measurement and production management and reporting.

HM 96 provides comprehensive guidance for the development, implementation, operation and audit process for allocation systems. It includes a recommended design process (outlining the steps required), describes key considerations for systems and highlights the essential components needed to run a successful system. The various allocation methods which are currently available to the industry are comprehensively reviewed, and worked examples are provided to illustrate how these operate in practice.

This document can be applied to any oil and gas production network and it is an essential piece of guidance for anyone engaged with allocation operations.