Oil and Gas Measurement Systems

The Directorate General of Oil and Gas has issued Circular No. 8631/18.06/DJM.T/2008 that sets out the acceptable measurement system to be used in the measure of oil and gas surrendered under Production Sharing Contracts for oil and gas business activities.

The Circular sets out that:

·                All contractors operating under a production sharing contract are under an obligation to surrender part of their production to satisfy domestic fuel needs and the fuel surrendered must be done using the standard measure;

·                The acceptable surrender points for the fulfillment of this obligation include, among others, nominated receivers, fuel depots, oil and gas service station.

·                The surrendering companies are responsible for accuracy; and

·                The surrendering companies are responsible for the installation of all equipment.

The measurement system must have satisfied some strict technical testing before being approved:

·                Factory Acceptance Test (FAT);

·                System Integration Test (SIT);

·                Hydro Test;

·                Site Acceptance Test;

·                Calibration; and

·                Commissioning.

The Circular also stipulates acceptable accuracy levels.

The Circular is current of 22 May 2008.