Smith Rea Energy - helping to simplify allocation agreements

Errors in allocation can lead to significant loss of revenue and reputation. Such errors may also trigger re-allocations, which can incur significant cost. Further, in the wake of the Sarbanes-Oxley act of 2002, operators traded on US exchanges have had to introduce a greater number of controls in their allocation and hydrocarbon accounting systems.

Smith Rea helps operators and partners reduce errors in allocation and at the same time carry out the checks on the allocation required by some interpretations of SOx. This is done through the design and delivery of software tools, for example:

Audit or check systems which can be used to verify allocation results either in-house of from third parties, and
Data validation utilities that can perform boundary checks, statistical validation, mass/volume balances and data cleansing.