saab rosemount tank radar ab production platform flow station tank farm export terminal refinery...

Saab Rosemount Tank Radar AB

PRODUCTION PLATFORMPRODUCTION PLATFORM FLOW STATIONFLOW STATION TANK FARMTANK FARM EXPORT TERMINALEXPORT TERMINAL

REFINERYREFINERY DEPOTDEPOT TRANSPORTATIONTRANSPORTATION PETROL STATIONPETROL STATION

Telemetry Nigeria LimitedTelemetry Nigeria LimitedProudly Presents to NEITI Methodology and Approach Proudly Presents to NEITI Methodology and Approach

Proposed forProposed for

The Study of Hydrocarbon Custody Transfer The Study of Hydrocarbon Custody Transfer Measurement Infrastructure in NigeriaMeasurement Infrastructure in Nigeria




Our MissionOur MissionOur mission is to be the worlds leading provider of innovative consultancy services delivery and pragmatic solutions for the Oil and Gas Industry.

We are committed to fostering customer loyalty and delivering sustained profitability to our shareholders.

Vital to our mission are financial stability, controlled growth, and appropriate risk management




CORE COMPETENCE AREASCORE COMPETENCE AREASTELEMETRY NIGERIA LTD - TNL functions on the premises that the need for effective service delivery requires a clear definition of the problem in order to proffer the appropriate solution.

In the process, TNL has developed certain core competences in the following areas:– Management Consulting– Legal Metrology Services– Engineering/Technical Management Services– Information/Communication Technology– Utility Metering Systems– Process Logic Central Systems/Network Control– Supervisory Control and Data Acquisition (SCADA) Systems




THE NEITI ASSIGNMENTTHE NEITI ASSIGNMENTIdentify and outline the status quo as regards physical measurements in both the Oil and Gas upstream and downstream industry, and outline the problems and issues associated with the current state of affairs;

Outline innovations and industry best practices on the subject of oil field measurements, product importation and product handling;

Identify the gaps between our local practices and global best practices;




Make specific recommendations of particular world class measuring devices that shall fulfill the requirement of API/ ISO standards for guaranteeing Legal, Accurate and Fair custody transfer measurement at production platforms, Flow Stations Crude Oil/Gas Export Terminals/Inland Depots in Nigeria; and

Outline implementation strategies on how to replace the present archaic systems to bring the industry operations at par with the international best practices.

THE NEITI ASSIGNMENTTHE NEITI ASSIGNMENT




Proposed Approach and MethodologyProposed Approach and Methodology PME: A Participatory Monitoring and Evaluation method

would be most appropriate to achieve the objective of the study

Tools: Some of the tools to be used, depending on its appropriateness at all levels for the PME include desk appraisals, field appraisals, testimonials, direct observations, in-depth interview/discussions, and photographic evidence resource.




Activities to be measured and EvaluatedActivities to be measured and Evaluated

Good Governance of the Oil and Gas Sector - How effective is the relationships between institutions involved in the sector: DPR, FIRS, CBN, AGF, NNPC (COMD, NAPIMS and PPMC). Are there gaps that could put revenue from the sector at risk?.

Institutional linkages between physical production facilities and financial controlling offices. How much data and information is shared between them and via what medium of communication.




Activities to be measured and EvaluatedActivities to be measured and Evaluated

Government system for financial management and control of financial flows from the sector

DPR, Ministry of Environment and Weights and Measures role in the oil and gas industry field operations




Location, Quality and Maintenance of installed meters at the various custody transfer pointsManagement routines for maintaining installed systems and continuous training for operations and management staff to keep them abreast of developments in the industryManufacturers Stated factory Accuracy Level for the measuring devices installed at various flow points

Activities to be measured and Evaluated…Activities to be measured and Evaluated…




Field Accuracy Level for the meters/gauges in operation

Compliance with the provisions of sections 7 and 16 of the Weights and Measure Act (CAP 467, Laws of the Federation) to test, verify, seal and issue certificate of verification passing all measuring equipment as fit for use at the crude oil and gas terminals in Nigeria.

Compliance with Section 16(3) of the Pre-shipment Inspection of Export Act, 1996 on export of crude oil and gas from the export terminals in Nigeria





Are the installed meters/Gauges verified and certified by Weight and Measure (W & M) as accurate, legal & fair for custody transfer?

Are thermometer, hydrometer, centrifuge tube and all other measurement devices (e.g. gauge, tapes) checked when first purchased against a “master” device. Which is traceable to NIST (National Institute for Standards and Technology, Gaithersbury, MD)?

Are meters/Gauges rechecked, recalibrated and legal metrology seals applied to check against tamper at least twice a year?

Weights and Measures Legal Metrological Seal/Certificate of Verification and Calibration of the measuring instrument.





level of uncertainty in the data and reports generated by instrument/devices currently in use

Does your storage gauging system have an overfill protection

Is the relay used for High-High tank level alarm approved according to the German TŰV (Technischer Űberwachungs Verein) for overfill protection?

Does your pipeline network have a remote monitoring and control system for leakages and vandalization

Indicate how often you check the cathodic (anti-corrosion) protection for your pipelines





the inadequacy of the methodology and the practice applied in the physical measurement of key parameters (such as volume, temperature, gravity, etc) in the hydrocarbons that are produced, refined, imported, exported, or in-transit within the country

the existing law on royalties regime and how crude oil volume is determined for payment of royalties

the veracity of the template used in the calculation of Petroleum Profit Tax (PPT) veracity as well as gas flaring penalties payment calculations and expenses charge on tax payable





Mass Balance for Upstream and Downstream flow measurements

Issues on procedure for subsidy payments from the Petroleum Subsidy Fund to importers of petroleum products

Effectiveness of remediation actions embarked upon by industry operators following issues raised in the NEITI 1999-2004 and 2005 financial, physical and process audit of the Oil and Gas sector





API/ISO Standard Accuracy Measuring ParametersAPI/ISO Standard Accuracy Measuring Parameters

Tank Gauging/Metering readings for volumes and mass that form the basis for calculations and invoicing must be extremely exact so that the deviation does not result in substantially negative consequences.

This is particularly true for accounting purposes such as batch transfer control/verification, inventory management and loss control.

Level + Avg. Temperature = VolumeLevel + Avg. Temperature = Volume

MassMass




International Standard Best Practice

Operational Efficiency Increase, and Uncertainty Reduction

Increase temp measurement accuracy to 0.6 °C (1 °F) and Level Accuracy to +-5mm (0.2 in)




Better Tank Gauging also means

1. Less measurement uncertainty2. Increased plant efficiency3. Improved loss control4. Less system maintenance5. Improved workplace safety6. Better environmental protection

= Less cost! Less trouble! Higher revenues!




Reporting on line Real Time

Net Production Logistics (Tracing/Tracking)

Interfaces to 3rd-party Systems

TRACING AND TRACKINGTRACING AND TRACKING

Deliverables:




Infrastructure for Custody Transfer Monitoring System - CTM The proposed CTM system would be the industry

surveillance system with the specific goal of providing on-line real time Computerized Inventory Management System for accurate determination of Revenue, Taxes, Royalties, Fees,Revenue, Taxes, Royalties, Fees, etc accruable to the Federation Account from both Upstream and Downstream sectors of the Oil and Gas sector of the economy




Infrastructure for Custody Transfer Monitoring System – CTM…..

Implementation of CTM on-line monitoring system in the Upstream sector is strongly supported by Resolutions and Declarations by both United Nations and OPEC:– United Nations – UN Resolution 1803 passed in 1962 affirms

the permanent sovereign rights of host country (Developing Countries) over its natural resources, thereby rejecting concept of ownership and restriction of information flow by transnational investor corporations

– OPEC - Nigeria became a member of the cartel in 1971. OPEC strongly encourages her members to assert their authority over their national assets through introduction of effective policies and application of efficient information technology in the monitoring and control of the upstream sector.




TM-SAUDI ARAMCO

for on-the-spot calculation of Taxes, Royalties, other Fees on export/import of crude oil and gas from and into the Rastanura Pumphouse No.1 to their various destinations

A Custody Transfer Measurement System for Ras Tanura




NIGERIAN OIL AND GAS UPSTREAM AND DOWNSTREAM SECTOR MEASUREMENT (METERING INFRASTRUCTURE) AND HANDLING STUDY

QUESTIONNAIRE ON CURENT STATUS OF THE MEASURING FACILITIES

THE NEITI AUDIT REPORT 1999 to 2004 AND 2005OBSERVATION AUDIT FINDINGS ACTIONS

RECOMMENDEDACTIONS TAKEN

S/N SUBJECT S/N TOPIC

1 Measuring system for crude oil

1.1 Mass Balance

Hydrocarbon volume mass balances were developed by companies and presented to us. All companies presented net volume balances, and most companies presented gross liquid balances (including water and losses). However, it proved difficult to determine the reliability of the gross balances

A suitable information system mainstreamed into the companies’ information and reporting systems, needs to be established to provide the mass balance data on a routine basis, without resorting to ad hoc exercises..

1.2 Royalties/

PPT

Volumes used by the companies for Royalty and PPT were reconciled between the hydrocarbon flows and the taxation and royalty returns. The position, however, is very complex due to the arrangements for unitisation and product swaps between companies. Some company data differed from the mass balance.

Each company should submit an annual statement to DPR and FIRS reconciling its PPT and royalty self assessments to the annual mass balance and DPR guidelines (to be prepared).




Thank you for your attentionThank you for your attention

?

saab rosemount tank radar ab production platform flow station tank farm export terminal refinery...

Documents

nigeria slide

production platforms

industry best practices

neiti assignment slide

gas industry

global best practices

international best practices

local practices