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Entitlement and overlift/underlift

Each partner’s share of production, what it has lifted and the balance between them, carried forward month to month. PSC cost oil, profit oil and tax oil, and Nigerian royalty in kind, worked out in barrels from the same production.

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First-release scope. This page describes what the first release of Converge HCA covers. Book a demo to see what is ready today.

WHAT IT DOES

Who is owed what, and who has lifted it

Entitlement is production multiplied by interest. Converge HCA holds each partner’s working and net revenue interest with effective dates, so an ownership change in the middle of a year applies from its date. The balance is entitlement less lifted volume: positive is underlift, negative is overlift, and it carries forward from month to month.

Under a production sharing contract, cost oil is the smaller of recoverable cost divided by price and the cost-oil ceiling on gross production; profit oil is the rest, split by the contract’s tiers. Converge HCA expresses each of them in barrels, so liftings and partner statements agree.

For Nigerian assets, royalty follows the Petroleum Industry Act 2021 by terrain, production tranche and price, and royalty in kind is the barrels owed to the state. With Converge IOMT also licensed, the fiscal terms come from the IOMT economics case, so forecasting and accounting use one set of rules.

In the first release

  • Partners and their roles
  • Working and net revenue interests with effective dates
  • Entitlement for each partner and product
  • Cumulative overlift and underlift balances
  • PSC cost, profit and tax oil in barrels
  • Nigeria PIA 2021 royalty in barrels and value
  • Royalty in kind
  • Fiscal terms from Converge IOMT when both are licensed

KEY CAPABILITIES

Interests, balances and fiscal barrels

Interests

Ownership as it stood on each date.

  • Partners, contracts and roles
  • Working and net revenue interests, date-effective
  • Ownership changes in a period applied from their date

Balances

Entitlement against liftings, carried forward.

  • Entitlement as production × interest
  • Lifted volumes from cargo records
  • Cumulative balance; negative means overlift
  • Balances agreed with terminal stock before the period closes

Production sharing in barrels

PSC terms turned into barrels.

  • Cost oil within the cost-recovery ceiling
  • Profit oil split by the contract’s tiers
  • Tax oil in barrels

Nigeria PIA 2021

Royalty in barrels and in kind.

  • Royalty by terrain and production tranche
  • Price royalty
  • Royalty in barrels and in value
  • Royalty-in-kind barrels

WORKFLOW

From allocated production to partner positions

  1. Set up partners and contracts

    Interests and fiscal terms, each with its effective date.

  2. Bring in production

    Allocated volumes for the period.

  3. Work out entitlement

    Production × interest for every partner and product.

  4. Post the liftings

    Each cargo counted against its lifter.

  5. Work out fiscal barrels

    Cost, profit and tax oil, royalty and royalty in kind.

  6. Agree the balances

    Balances checked against terminal stock before the close.

CONNECTED MODULES

What entitlement draws on

FAQ

Entitlement and overlift/underlift: common questions

What does a negative balance mean?

Overlift: the partner has lifted more than its entitlement to date. A positive balance is underlift. Both carry forward until later liftings even them out.

Where do the PSC terms come from?

From the contract record. With Converge IOMT also licensed, they can come from the IOMT economics case; without it, Converge HCA uses its own fiscal table and shows that the link is unavailable.

Does it handle joint-venture billing or cash calls?

No. Joint-venture billing, cash calls and revenue distribution stay in your finance system.

Is crude valuation included?

Not in the first release. Pricing inputs, such as an official selling price or a benchmark plus a differential, are planned for the release after.

Know every partner’s position, every month.

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