People, process, technology: achieving best practice in hydrocarbon allocation

Abstract

For many organisations, the hydrocarbon allocation process can be a black box; it can be difficult to manage and consequently there is a struggle to keep up as the business progresses.

Often large investments from joint ventures (JVs) drive the requirement for an effective allocation on which return on investment is accounted, while regulatory bodies hold an interest for taxation and environmental purposes.

It is the mix of people, process and technology that is the key to achieving a reliable and manageable allocation. Technology is a powerful tool, but without effective resource and knowledge management there is no guarantee the allocation process will meet the requirements of the business in an efficient manner.

Recognising common allocation management pitfalls and using a proven best practice approach will help to ensure stakeholders and assets are serviced correctly. At the same time a good understanding of the allocation is necessary for it to be transparent and responsive, to ensure resources are optimally used, and that timely and costly support issues are avoided.

Staff in and around the hydrocarbon accounting function in the process need to be engaged and used effectively. Technology must be implemented with care, documents must be effective and business support processes must be clear and enforceable. On an ongoing basis knowledge management must balance the technology against the business.