The firm, which specializes in the complex business of allocating the ownership of hydrocarbons flowing through shared pipelines, has been awarded the renewal for a further 18 months.
As part of the contract, Smith Rea is providing Nexen U.K. with specialist consultants to run the allocation operations of the Scott-Telford area fields, act as technical authority for allocation issues and provide allocation support to Nexen U.K. project teams. Initially, this involves two allocation engineers and a senior consultant.
Smith Rea is an experienced consultancy offering services in hydrocarbon allocation, oil and gas production reporting, measurement and technical audit.
Hydrocarbon allocation is the process of determining ownership of oil and gas and tracking it from production to the point of sale. It involves several business processes that are defined in contracts or operating agreements between owners and operators of fields and pipelines.
Alan Spence, managing director of Smith Rea says: "Traditionally, most operators dealt with allocation in-house or used firms that offer metering services. However, the situation is changing with a real focus on allocation and we are ideally positioned to capitalize on this with effective solutions based on our broad experience and robust systems."
"Errors and delays in hydrocarbon accounting can result in significant financial loss. In transportation and processing systems handling billions of dollars worth of oil and gas each year, even the smallest mistake can have real financial consequences. It is therefore essential that every effort is made to ensure allocation rules are fair, computer system are correctly programmed, measurements are accurate and reporting is timely."
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