sap oil and gas_new

8/10/2019 SAP OIL AND GAS_New

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SAP OIL AND GAS

BY PRA CAPABILITY


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IntroductionThe petroleum industry is usually divided into three major

components:

Upstream, midstreamand downstream.Midstream operations are usually included in the downstream

category.
http://en.wikipedia.org/wiki/Upstream_(oil_industry)http://en.wikipedia.org/wiki/Midstreamhttp://en.wikipedia.org/wiki/Midstreamhttp://en.wikipedia.org/wiki/Upstream_(oil_industry)


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Down Stream

The downstream oil sector is a term

commonly used to refer to the refiningof

crude oil, and the selling and distribution of

natural gasand products derived from crude

oil. Such products include liquified petroleum

gas (LPG), gasoline or petrol,jet fuel, diesel

oil, other fuel oils, asphaltand petroleumcoke.
http://en.wikipedia.org/wiki/Oil_refineryhttp://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Petroleum_producthttp://en.wikipedia.org/wiki/Petroleum_producthttp://en.wikipedia.org/wiki/Liquified_petroleum_gashttp://en.wikipedia.org/wiki/Liquified_petroleum_gashttp://en.wikipedia.org/wiki/Gasolinehttp://en.wikipedia.org/wiki/Jet_fuelhttp://en.wikipedia.org/wiki/Diesel_oilhttp://en.wikipedia.org/wiki/Diesel_oilhttp://en.wikipedia.org/wiki/Fuel_oilhttp://en.wikipedia.org/wiki/Asphalthttp://en.wikipedia.org/wiki/Petroleum_cokehttp://en.wikipedia.org/wiki/Petroleum_cokehttp://en.wikipedia.org/wiki/Petroleum_cokehttp://en.wikipedia.org/wiki/Petroleum_cokehttp://en.wikipedia.org/wiki/Asphalthttp://en.wikipedia.org/wiki/Fuel_oilhttp://en.wikipedia.org/wiki/Diesel_oilhttp://en.wikipedia.org/wiki/Diesel_oilhttp://en.wikipedia.org/wiki/Jet_fuelhttp://en.wikipedia.org/wiki/Gasolinehttp://en.wikipedia.org/wiki/Liquified_petroleum_gashttp://en.wikipedia.org/wiki/Liquified_petroleum_gashttp://en.wikipedia.org/wiki/Liquified_petroleum_gashttp://en.wikipedia.org/wiki/Liquified_petroleum_gashttp://en.wikipedia.org/wiki/Petroleum_producthttp://en.wikipedia.org/wiki/Petroleum_producthttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/Oil_refinery


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Up Stream

The upstreamoil sector is a term commonly usedto refer to thesearching forand the recovery andproductionof crude oiland natural gas. Theupstream oil sector is also known as the

exploration and production (E&P) sector. The upstream sector includes the searching for

potential underground or underwater oil and gasfields, drilling of exploratory wells, and

subsequently operating the wells that recoverand bring the crude oiland/or raw natural gastothe surface.
http://en.wikipedia.org/wiki/Extraction_of_petroleumhttp://en.wikipedia.org/wiki/Crude_oilhttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Extraction_of_petroleumhttp://en.wikipedia.org/wiki/Crude_oilhttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Crude_oilhttp://en.wikipedia.org/wiki/Extraction_of_petroleum


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The well is treated as Master data in SAP.

The transaction code associated with is


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Joint Venture

Definition

A joint venture in the SAP System is a summarization ofcost objects whose costs are split up among partners.

A joint venture is usually lead by an operatingauthority, who is responsible for the costs incurred. Atthe end of a period, all of the costs incurred are split upand allocated to the partners involved.

Joint ventures are created to keep costs as low aspossible for the operating authority and the partners.This is achieved by distributing the costs incurred tothe participants of the joint venture.


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Example

In the oil industry, new drill-holes are seldomcontrolled by the oil companies alone. Instead,contracts are made with other companies. Thecontract regulates the costs incurred. This

enables the risks involved with an unsuccessfuldrill-hole to be spread out over severalcompanies.Of course, the anticipated profits (from a rich

drill-hole) are also distributed to the partnersinvolved..However, the distribution of the profitsis not carried out by the SAP Joint VentureAccounting solution


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Division of interest (DOI)

Venture/DOI is an entity in PRA.

A "venture" in PRA in this context is a property, or piece of land. Adivision of interest (DOI) is a subdivision of a venture, based oncombined product code. Each venture has one or more DOIs. EachDOI represents an ownership interest situation separate from the

other DOIs. The structure of the fractional ownership in the property

determines how revenue is calculated for each specific owner, andthe DOI is used to help determine that.

Example

You can have, for one company code, a venture, with two divisionsof interest. One DOI might be "DOI 00001" - oil products, and thesecond could be "DOI 00002" - gas products".


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Transaction is O3U_DI1 .


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The type of owner ("interest category" is also the type of owner inownership).

Within PRA Ownership, there are three owner interest categories:

Working interest:

An owner in the venture/DOI who is incurring expenses to extract product

from the ground. Carried interest:

A working interest owner, but one who is being "carried" by anotherowner in the property. This situation arises when, for example, oneworking interest owner decides to drop out of the expenses of operatingthe venture/DOI, and agrees with another owner, that that owner will

financially "carry" his costs associated with the venture/DOI. Royalty interest:

An owner who has an ownership interest in the venture (so can receiverevenue), but does not do any work at the venture.


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Well.

An oil well is a general term for any boring

through the earths surface that is designed to

find and acquire petroleum oil hydrocarbons.

Usually some natural gas is produced alongwith the oil. A well that is designed to produce

mainly or only gas may be termed a gas well.


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Well ID is Master data in SAP.


O3U_WL1.The table associated with transaction code is

OIU_PR_WELL.


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Use this to create a well completion dated

record.

This transaction defines details about a well

completion that are effective within a

specified date range. This is used for situations

in which you want to create a well completion

ID specific to a set date range.


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O3U_WC1.

The table associated with transaction code isOIU_PR_WC.


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Business Associate

The PRA business associate is a master record, which represents a third partyhaving any of a variety of business associations with your company. It isrepresented as a 6-character ID in the system. Business associates are participantsin a variety of PRA transactions.

The BA is linked with SAP Core vendor maintenance, and is thus either a customeror a vendor.

Examples of business associates: - Billing interest

- Carried interest

- Operator

- Purchaser

- Shipper

- Seller - Transporter

Business associate is synonymous with owner in PRA. In the oil industry, businessassociates are sometimes referred to as partners.


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Delivery network number

A structure within PRA that represents theflow of product from a well completionthrough various measurement points - where

the product is measured or used, to theproduct's final disposition measurement point(final sales or custody transfer point).

The structure is built in the system by definingconnections between well completions andmeasurement points.


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O3U_DN1.

The table associated with transaction code isOIU_PR_DN.


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Delivery Network Dated

Characteristics

Use this to define the details of a delivery

network, and to set up the way in which a

network is processed throughout the

Production, Contractual Allocation, andValuation components of PRA.


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Delivery Network Allocation Profile

This defines the allocation rules for a particulardelivery network. The allocation rules established inthis transaction directly affect how the volumeallocation cycle processes allocations for the delivery

network specified in this transaction. Allocation rules include details about:

The product to be allocated (note that you allocateone product per network, as a rule).

The volume type to be allocated (see: VolumeCategories and Volume Types).

The order in which the products and volume types areto be allocated
http://help.sap.com/saphelp_erp60/helpdata/en/3d/f1a9fdefc43b4e95dcd2e0450b3d2a/content.htmhttp://help.sap.com/saphelp_erp60/helpdata/en/3d/f1a9fdefc43b4e95dcd2e0450b3d2a/content.htmhttp://help.sap.com/saphelp_erp60/helpdata/en/3d/f1a9fdefc43b4e95dcd2e0450b3d2a/content.htmhttp://help.sap.com/saphelp_erp60/helpdata/en/3d/f1a9fdefc43b4e95dcd2e0450b3d2a/content.htm


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O3U_DNAP1.

The table associated with transaction code isOIU_PR_DNAPD

.


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Delivery Network Downstream Node

The delivery network downstream node is the

measurement point to which upstream

measurement points and/or well completions

are linked


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O3U_DNND1.

The table associated with transaction code isOIU_PR_NODE_DN.

.


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Measurement point number

A measurement point is a point in a deliverynetwork where a material is measured, used, sold(or subject to some other type of volumedisposition). The measurement point representsa device or piece of equipment where product isconsumed, measured, observed, or calculated. Ameasurement point can also be a fictitious,

logical entity created in the PRA system, and thatis required for the allocation of product in thePRA system.


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O3U_MP1.

The table associated with transaction code is

OIU_PR_MP.


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O3U_MPD1.


OIU_PR_MPVD.


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Measurement Point Allocation

Profile

This transaction defines allocation rules for a

given measurement point within a delivery

network.

The allocation rules determine:

The products and volume types of all

volumes to be captured at the measurement

point

The method used to capture the volume


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O3U_MPAP1 .


OIU_PR_MPAPH (Header),

OIU_PR_MPAPD(Detail).


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Marketing Group Assignments Use this transaction to assign working interest owners in a

venture/division of interest (DOI) to marketing groups bydesignating a marketing representative for each owner.

A marketing group consists of one or more working interestowners jointly marketing a product under one or morecontracts. The major product, the venture/DOI, and an effectivedate range are used to establish a marketing group. The

marketing group ties working interest owners to the contract(s).(Each contract is assigned a marketing representative when it isentered into the system.)

Each marketing group can have multiple contracts, but acontract can be linked to only one marketing group.

Note that changing the marketing representative or thepurchasing representative generates a prior period notification.


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Prerequisites

The venture/DOI exists, and is checked in.

All marketing representatives exist as valid

customers.


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O3U_CA011 .


OIU_SB_MGDH (Header) and

OIU_SB_MGDD(Detail)


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Bearer Group Number

Identifies the bearer group, which is used in burdening in PRA."Burdening" in PRA is the process of the working interest owners"bearing" the costs from a PRA venture for the royalty interest (RI)owners.

A bearer bears the costs associated with exploration/development

and production. The bearer group describes the relationship(obligations and percentage share) that each working interestowner has to their respective royalty interest owners.

The bearer group is linked to a division of interest to indicate theworking interest owners that are responsible for paying the non-working interest owners. The bearer group is also used to

determine working interest owners' gross revenue interest (GRI),which is used to determine working interest (WI) owners' entitledvolumes for marketing and production.


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The following are the bearer group types:

- Carried bearer group (links WI owners with

CI owners)

- Royalty bearer group (links WI owners with

RI owners)


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O3U_BG1.


OIU_DO_DO and OIU_DO_BGUC_WK.


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Product Balancing Agreement

The PBA represents the legal document, signed

by owners, that specifies how imbalances will be

processed. An imbalance is the actual volume or

energy minus the entitled volume or energyduring one sales period.

In order to enter a PBA number, the DOI XRef

type must be set as Default. Only one PBA canexist for each well completion / product code

combination.


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Transaction code to maintain the PBA against

WC/MP is O3UBL01_WORKPLACE

i i


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Joint Operating Agreement

The Joint Operating Agreement (JOA) groups Joint Ventures (JV's).

Especially in the US market, large numbers of JV's occur. Within the JOA,the partners agree on their shares of ownership (equity groups) and therules to apply for overhead calculations.

The agreement is applicable for every JV which belongs to the JOA.

There can be any number of JOA's within one company code and anynumber of JV's within one JOA. One JOA can only belong to one companycode and a JV to only to one JOA.

An equity group which is maintained on the JOA level is displayed withinthe JV maintenance transaction once the equity group is assigned to anequity type. The assignment takes place on the JV level.

J i i l


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Joint operating agreement class

JOA's are grouped in classes which can be

defined by the user. Each JOA class has a

number range which can require an internal or

external number. The class of the JOA mustexist before a JOA can be created within the

class (customizing function). The class of the

JOA cannot be changed after the JOA has beencreated.


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Joint Operating Agreement (JOA) A JOA is a formal agreement that specifies the conditions for a joint

operation. This covers the interests of the partners and their properties, aswell as overheads and penalties.

Joint Venture

This is an association of two or more partners, formed to share a venturesrisks, costs, and revenues. Each partners share is proportional to theirundivided interest in the venture.

Equity Type

The JOA has different development stages, such as engineering anddesign, construction, and production. Different partners participate ateach stage. JVA manages the different stages by using equity types. Anequity type explains a particular association of partners. This definitionmay be related to time, phase or purpose and is linked with a specificequity group.


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Equity Group An equity group represents an association of venture partners and their

interests. An equity group may consist of all or some of the venturepartners.

Joint Venture Partner

This is a partner mentioned in the JOA with an undivided interest in aventure. One partner, called the operator, manages the operation. Theremaining non-operating partners share expenses and revenues.

Recovery and Billing Indicators

You assign a recovery indicator to a cost object to indicate whether or notexpenses, posted using the cost object, are billable to JVA partners. Youassign billable costs to the appropriate partners. Non-billable expenses areassigned to the operator. Billing indicators are assigned to billable postingsand identify the type of posting involved, including cash call, normalexpenditure, and audit adjustment.


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There are five types of joint ventures or Venture types. Each type is used to identifya different form of ownership. The venture types are described in the followingtable:

Operated (no tax)

Operated by the company managing SAP JVA

Allows carried interest (CI) or net profit interest (NPI), partner, and suspenseprocessing

You can not add a tax to this type of venture

Operated (with tax)

Operated by the company running SAP JVA

Neither CI/NPI partner nor suspense processing is allowed for this type of venture

You can assign a tax code Cutback calculates tax charges to venture partners, based on the tax setting for the

company in the SAP JVA configuration


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Non-operated venture Company managing SAP JVA holds a non-operated venture share

This is billed by the operator for its share of venture expenses

Non-operated on-billing

Company running SAP JVA sells part of its non-operated share of the venture tothird parties.

Company running SAP JVA distributes portions of the billings it receives from theventure operator to the partners in its non-operating share, in effect acting as anoperator toward these third party partners

Corporate venture

Company running SAP JVA holds a 100% interest

Only one default corporate venture and equity group exists in a JVA company

Expenses booked in the SAP JVA company without SAP JVA information, such asventure and equity group, are assigned to the corporate venture and equity groupby default

Your system administrator sets this up in configuration


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Transaction code for Creating JOA is

GJA1.

Table is T8JU.

Transaction code for Creating JVA is

GJV1.

Table is T8JV.

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