An organized approach should provide priorities for oil and gas companies to work on. Saskatchewan Ministry of Economy (ECON) measurement and reporting Directives are now in effect for all producers and processors to comply with. Business value can be extracted by following Directive PNG017 measurement and PNG076 EPAP rules. Useful results don’t have to inflate lifting costs or capital budget line items. The cost is actually high to do nothing with risks of both noncompliance and revenue uncertainty.
In 2016 the new Saskatchewan regulatory requirements came into effect:
- PNG017 Measurement Requirements for Oil and Gas Operations
- PNG028 Initiating and Operating the Enhanced Production Audit Program (EPAP)
- PNG076 Enhanced Production Audit Program (EPAP)
- (Existing) R01 Reporting Requirements for Oil and Gas Operations
Meter calibrations are important as a PNG017 compliance indicator. But from measurement and reporting assessment reviews on many facilities, attention is needed to improve compliance with measurement schematics, proration factor monitoring in field data capture systems, sampling for water cut determinations and for laboratory analyses, vent volume reporting as well as fuel gas measurement. Application of meter factors and facility volume balance must be checked. A baseline summary of vendor-neutral measurement improvement opportunities is essential beyond what meter service companies supply in a corporate measurement process where volume balances must be reported. As well, Dapenco facilitates discussions between Production Accountants, Engineers and Operations people for EPAP controls evaluations.
Regulatory inspections identify noncompliance issues the way fire alarms draw attention to unacceptable processes. Do you know where potential revenue uncertainties occur and is your company ready for annual PNG017 compliance audits? A measurement assessment should provide a baseline summary of findings from which staged action steps are prioritized.
Trial and annual EPAP Declarations have been submitted smoothly for Dapenco client companies. Remedial actions are ranked by priority in order of revenue risk. Benefits become apparent as Dapenco develops value-adding steps with producing companies in their corporate measurement process. Additionally, submission and approval of regulatory exemption applications provides Fit-for-Purpose benefits to keep costs down.
We look forward to helping your company realize value with an effective measurement process.
David Penton
Dapenco Inc.
david@dapenco.ca
403-869-7368