Enterprise platforms · Oil and gas

Hydrocarbon production allocation software

We build custom hydrocarbon production allocation software for operators and joint ventures: a model of the production network, allocation methods from well tests and fiscal meters, treatment of shrinkage, fuel, flare and vent, partner shares and a reconciliation that shows what was measured against what was allocated. The rules are explicit, versioned and yours, and you own the code.
Drawing for Hydrocarbon production allocation software
Requirements spec · Oil and gas

Upstream operations system requirements

A requirements specification you can adapt for an upstream production management or surveillance system: master data, acquisition, allocation, deferment, exceptions, reporting and the IT and OT boundary.
  • 01Eight requirement areas written as testable statements.
  • 02Questions on data sources, quality flags and restatement rules.
  • 03The IT and OT boundary items security teams ask about.
  • 04Seven questions to put to any vendor or development partner.
Free download

Get it on screen in a few seconds.

No newsletter. We use your details to follow up once about the download, and you can ask us to delete them at any time.
What it covers

What the system does, module by module.

  • 01

    Production network model

    A graph of wells, manifolds, facilities, pipelines and export points with the streams between them and the measurement point on each stream, effective-dated as the network changes.
  • 02

    Measurement ingestion

    Fiscal and allocation meter volumes, test separator data, tank dips and laboratory results with quality flags, corrections and a clear record of which value was used.
  • 03

    Well test processing

    Validation of tests, calculation of rates and phase fractions, and the selection of the test that represents each well for a period.
  • 04

    Allocation methods

    Back-allocation from fiscal meters to wells by test-based theoretical rates, by pro-rata on potential or by direct measurement, chosen per node and recorded.
  • 05

    Shrinkage, fuel, flare and vent

    Processing losses, shrink factors, fuel gas, flare and vent volumes taken out in a defined order so reported sales volumes and allocated volumes agree.
  • 06

    Commingled streams and shared facilities

    Allocation across fields that share a pipeline or processing plant, including tariff and capacity use, with the rules agreed between the parties.
  • 07

    Partner and royalty allocation

    Allocated volumes split by working interest, production sharing terms, royalty or tax rules, with statements per partner and per period.
  • 08

    Reconciliation and allocation factors

    Allocation factors, imbalances and unallocated volumes by node and period, with thresholds that raise a review before the period closes.
  • 09

    Restatement and period close

    Daily provisional allocation and a monthly final, with approval, locking and restatement that keeps every earlier version.
Architecture

Reference architecture.

Hydrocarbon production allocation software: reference architectureMeters, test separators and laboratory data feed an allocation platform with a production network model, measurement ingestion, well test processing, allocation methods, shrinkage and fuel treatment, partner allocation and reconciliation. Outputs go to production reporting, partners, accounting and regulators.Measurement dataAllocation platformConsumersFiscal and well metersVolumes, quality flagsTest separators and wellsRates, phase fractionsLaboratory and tank dataComposition, dipsProduction allocation platformNetwork modelWells to export, datedMeasurement ingestionCorrections, versionsWell testsValidate, select, rateAllocation methodsBack-allocation, pro-rataLosses and fuelShrink, flare, ventPartner sharesInterests, royalty, PSCAllocation factors · restatement log · audit trailProduction reportingDaily and monthlyPartners and operatorsStatements, sharesHydrocarbon accountingReconciled volumesRegulatorsRequired returnsOne-way from OT
Reference architecture: measured volumes flow down the network model and out to wells, partners and accounting under explicit rules.
Standards and interfaces

What we design against.

API Manual of Petroleum Measurement Standards, Chapter 20
Allocation measurement practice for oil and gas, which the methods and uncertainty treatment follow.
PRODML
Energistics standard for production data exchange between operators, partners and systems.
Production sharing and joint operating agreements
The contractual rules for interests, cost recovery and royalty that determine how allocated volumes are split.
OPC UA
Read-only access to meter and historian values on the operational side.
Regulator reporting formats
The production returns each regulator requires, generated from the allocated and approved volumes.
IEC 62443
Zones and conduits at the boundary between control systems and the allocation platform.
Data model

The core entities.

Network node and stream
Wells, facilities, pipelines and the flows between them, with effective dates and the measurement points on each.
Measurement
Value, unit, time, quality flag, source and any correction, with the version used for allocation.
Well test
Date, duration, conditions, rates, phase fractions and the validation outcome.
Allocation method and parameters
Method per node, factors, order of deductions, version and approval.
Allocation result
Allocated volumes by well, stream and phase, the method and the provisional or final status.
Interest and agreement
Partners, shares, royalty and production sharing terms with effective dates.
Restatement
Original and revised volumes, reason, approver and the periods affected.
Build, buy or extend

When custom development is the right call.

Buy

Established hydrocarbon allocation and accounting packages suit operators with large, complex fiscal measurement and a vendor that already covers the regulator's formats and audit expectations.

Extend

Extend when an existing package handles fiscal accounting but daily provisional allocation, test processing or partner statements live in spreadsheets. We build that layer and feed the package reconciled volumes.

Build

Build when the asset base is small or mid-sized, the network and agreements are specific, or you need transparent rules that partners and auditors can read and test.
Security and compliance

Controls designed in, not added later.

  • Rule transparency

    Methods, factors and the order of deductions are data that partners and auditors can inspect, not logic buried in a script.
  • Approval and locking

    Periods are approved and locked by named roles, and any restatement keeps the earlier figures with a reason.
  • Separate partner views

    Each partner sees its own share and the agreed shared data, and nothing belonging to others.
  • One-way data flow

    Measurement data is read from the operational side; the platform has no write path to control systems.
  • Audit trail

    Every input, correction and method change is recorded with user and time, so an allocation can be reproduced.
How we deliver

From discovery to a system you run.

  1. 01

    Network and agreement review

    We map the production network, the measurement points and the agreements that govern allocation, with the production, accounting and commercial teams.
  2. 02

    Method and data design

    Allocation methods, deductions and data sources are specified per node and agreed with partners where required.
  3. 03

    Build and back-test

    The platform is built and tested against historical periods, with results compared against the allocations actually reported.
  4. 04

    Parallel period

    One or more periods are allocated in both the old process and the platform, and differences are explained.
  5. 05

    Go live and extend

    The platform takes over daily and monthly allocation, with partner statements and regulator returns generated from it.
Relevant work

Where to see our work.

Related

Keep reading.

Questions

Common questions.

Can partners trust and audit the allocation?
That is the main design goal. The network, the methods, the factors and the order of deductions are stored as data with versions and approvals, so a partner or auditor can see how a number was reached and rerun it.
Does the software replace hydrocarbon accounting?
It covers allocation and the production side of the accounts. Fiscal accounting, custody transfer and financial postings usually stay in your accounting system of record, which we feed with reconciled volumes.
How are restatements handled?
A restatement creates a new version of the affected periods and keeps the original. The reason and approver are recorded, and downstream statements show both figures.
Can it handle shared facilities and commingled streams?
Yes. The network model represents shared pipelines and plants, and allocation across parties follows the rules agreed for each shared node.
Who owns the code and the rules?
You do. The code, the allocation rules and the data stay yours.
Next step

Tell us what you need built.

Describe the system and the systems around it. An engineer replies within 1–2 business days.Start a project