OT05920 - PRT: terminal liftings - allocation of oil sold under 바카라 사이트˜Period of Entitlement바카라 사이트™ and term contracts (Regulation 5)
Regulation 5 outlines the modified allocation rules to determine how oil sold under POE and other term contracts is to be allocated across a company바카라 사이트™s field interests that deliver into those contracts.
The same formula and principles as outlined for regulations 4 and 6 above apply, except that the C figure in the formula will only be the sum of the participator바카라 사이트™s B figures for field interests covered by the contract in question.
Example:
Scavenger Ltd has an interest in 3 fields in Sporting blend - Dog, Duck and Waders.
Scavenger Ltd has a term contract with Major UK Ltd. The contract covers Scavenger바카라 사이트™s oil production from its interests in both Dog and Duck fields, but not its interest in Waders field.
In Month M Scavenger바카라 사이트™s entitlements from the 3 fields are as follows:
Dog 50,000 bbl
Duck 30,000 bbl
Waders 50,000 bbl
Major UK Ltd lifts 40,000 bbl of oil under the term contract with Scavenger on 10th M. How is this allocated across Scavenger바카라 사이트™s fields?
A = 40,000 bbl (that is, the amount lifted and sold under the contract in question)
Dog바카라 사이트™s B = 50,000 bbl
Duck바카라 사이트™s B = 30,000 bbl
So, C = 80,000 bbl
Dog바카라 사이트™s allocation = 40,000 (A) x 50,000 (B) / 80,000 (C) = 25,000 bbl
Duck바카라 사이트™s allocation = 40,000 (A) x 30,000 (B) / 80,000 (C) = 15,000 bbl
Production from Waders will in all likelihood be sold under another term / POE contract. If it is the only field under the contract then lifting of oil by the purchaser under this contract will be allocated to Waders alone.