PRA- Production and Revenue Accounting
An oil field is an area developed for exploration of hydrocarbons from one or more reservoirs in the underground.
The petroleum industry includes the global processes of exploration, extraction, refining, transporting and marketing petroleum products.
The American Petroleum Institute divides the petroleum industry into five sectors:
- upstream (exploration, development and production of crude oil or natural gas)
- downstream (oil tankers, refiners, retailers and consumers)
- service and supply
Production refers to production of crude oil or natural gas.
The contract is a business arrangement for exploration of the oil field between the licensor and licensee.
The licensor is the mineral rights owner or the land owner.
The licensee shares investment costs, operational costs, and income from the oil field.
In case of a production sharing agreement, PSA, the licensee will take all development costs and have this capital recovered by “cost oil”. “Profit oil” will be shared by licensee and the state. The licensee may be one oil company, or often a group of companies sharing the risks, costs and profit in a partnership, consortium or joint venture.
Accounting refers to practices of breaking down extracted hydrocarbons across petroleum wells.
It covers inventory control, material balance, ownership of hydrocarbons being transported in a transportation system
These are important feed into production reporting to governments and partners, operator’s internal systems for product sales, accounting, ERP, data warehouse, and management information.
SAP PRA – Production and Revenue Accounting
The following are the various components of this SAP module:
Ownership – Ownership is an ownership management component.
Upstream Graphics – includes icons representing different types of entities, such as well completions.
Production – defines allocation rules and to process master data for entities including well completions, measurement points, and delivery networks.
Measurement System – measurement point volumes at observed conditions, and convert those to reading data and measurement documents in standardized units.
Contractual Allocation – allocates volumes of oil and gas transported from sales points or well completions to multiple contracts and owners.
Product Control – forecasting of product volumes available for sale for each working interest owner in a producing entity.