Glossary

Terms are in alphabetical order.

Allocation: sharing a measured total back to the wells, fields or owners that produced it.

BS&W, S&W: basic sediment and water: the share of a liquid volume that is not hydrocarbon.

By-difference allocation: giving one contributor whatever remains after the measured contributors are subtracted from the total.

CCF: combined correction factor: the product of the temperature, pressure and meter correction factors, rounded once.

CTL, CPL: correction factors for the effect of temperature and of pressure on a liquid.

Entitlement: the share of production an owner is due: production multiplied by its interest.

Exposure: the financial value at risk from allocation uncertainty, for a field or an owner.

GOV, GSV, NSV: gross observed volume at line conditions; gross standard volume corrected to base conditions; net standard volume, which is GSV less sediment and water.

Lifting: taking crude out of terminal stock, usually as a cargo, by one of the owners.

Maker-checker: A control in which the person who approves an entry cannot be the person who prepared it.

Materiality: the size of a difference, absolute or relative, above which a reconciliation item goes to review.

Meter factor (MF): the ratio of the volume a prover measured to the volume a meter indicated, used to correct the meter's readings.

Overlift, underlift: lifting more, or less, than an owner's entitlement to date.

Period lock: A closed month that can no longer be edited, only adjusted forward.

PPA: prior-period adjustment: a correction to a month that is already closed, posted to the open month.

Royalty in kind: royalty paid in barrels of production rather than in money.

Theoretical volume: A contributor's estimated share before allocation, from a well test, a meter or an agreed share.

Uncertainty-based allocation: sharing the difference between measured and theoretical totals in proportion to each contributor's measurement uncertainty.

VEF: vessel experience factor: the average ratio of a ship's figures to shore figures over its past voyages, used to correct the ship figure.

Working interest, net revenue interest: an owner's share of costs, and its share of revenue after royalties.