7.1.3 Use Case 4: Obtain Historical Production Data Post-Sale (“Acquisition”)

Version

1.0

Author

Bill Logsdon/Ashraf Wardeh (Oxy)

Reviewer(s)

Goal

Reduce cost and effort of post-acquisition data loads and improve completeness and accuracy of loaded data.

Business Requirement

General requirements

Provide needed production data in easy to access format

Provide consistent, complete information needed to operate acquired properties

Specific data requirements relevant for PRODML include:

Monthly allocated production and injection volumes by well completion

Complete well status, type, and Method Of Production (i.e., artificial lift type) history

Well test data by well completion

Downtime and lost production by well completion

Daily Raw Injection Volumes

Daily meter volume if available

Gas composition data if available and supported by PRODML

Analog data if available (Inferred Production, Beam and ESP settings, etc.) if supported by PRODML

Booked Production Volumes (i.e., sold volumes) reporting by Financial Accounting systems. (Noting these are not revised; instead a prior period adjustment would be made in case of error: hence allocated and booked volumes can be different).

Scope of allocated volumes includes the entire history of the properties. Scope for other data is based on availability of the data.

Additional data requirements that are outside the scope of PRODML include

Complete well master data, including wells, well bores, and well completions (lat long, field, reservoir, operator, completion date, date of production, location information, operating lease)

Facility data

Well and Facility Maintenance history

Cost information

Business Value

Consistent format and contents of production information reduces amount of custom programming required for both buyer and seller

Ability to use pre-existing solutions based on PRODML standards reduces time and cost for data room functions (both seller and prospective buyers)

Fully incorporating PRODML data model into acquisitions process will yield more consistent and complete data, which will drive more operational success for acquiring companies and ultimately better sales prices for divesting companies

Summary Description

Once the acquisition is complete, the next step is for the acquiring company to take over the properties and start operating them. The immediate need is for minimum information to be able to perform closings for financial and production accounting systems. Additional reserves need to be calculated and booked and production and status history need to be loaded for future production accounting functions. The time frame for doing the initial loads is often very short as deadlines for taking over acquired assets tend to be very short.

Once the initial data loads need to support accounting closings are completed, the rest of the data is loaded and validated as resources are available. Success in this second phase supports more efficient and successful operation of the acquired property.

Actors

Divesting Party – organization selling properties

Prospective Acquiring Parties – organizations considering bidding on a property

Triggers

Initial load is triggers when the sale is closed and the final contracts are signed

Secondary load is triggered when the initial load is completed and acquiring company has taken over operation of the properties

Pre-conditions

NA

Primary or Typical Scenario

Acquiring party is typically given all relevant data that can be provided by the divesting party (although quality of data may be inconsistent). The acquiring party determines critical data need to support initial closing process. Once the required data is located, they attempt to load the data and perform their initial accounting closings. If critical data is missing, requests will be made to the divesting party.

Complete load may take several months and data gaps found during this phase are much less likely to be addressed by the divesting party.

Alternative Scenarios

Follow up data transfers may be requested when needed data is missing from the initial data load process.

Post-conditions

Validation of the acquired data is performed to determine completeness, consistency, and accuracy. In addition reformatting may be necessary to convert data into format used by acquiring company (PRODML can provide value here by reducing data conversions needed).

Business Rules

Notes

Definitions

Well completion – the zone / completion of the well where production or injection is occurring (typically assigned an API_NO14 is US properties).