Custody Transfer: Oil and Gas Industry Measurement and Verification Process
In the oil and gas (Oil and Gas) industry, custody transfer is how product ownership changes hands, from producer to consumer or between companies. This process involves a series of very precise measurements and verifications.
From volume measurements to quality, every detail is calculated with high precision. This aims to ensure that every liter of oil or gas sold matches what consumers or other companies purchased.
That way, there is no room for manipulation. As a result, the process can guarantee transparency in every business transaction. Sucofindo, as one of the parties who play a key role, helps ensure that everything runs according to standards.
Way of workCustody Transfer
In this process, the main tool used to measure is the flowmeter. What is flow metering? This tool is designed to offer a very high level of accuracy and reliability. Flowmeter measures the mass or volume of liquid before and after the transfer process, and this data is the basis for determining the value of the product being traded.
Apart from that, several other factors, such as pipe temperature and pressure, are also important in determining measurement accuracy. An error as small as 0.1% in measurement can mean a difference of hundreds of thousands of dollars in transactions.
Therefore, routine calibration of measurement tools is required. This includes pressure and temperature calibrations, which independent surveyors usually carry out to ensure data accuracy.
Surveyors also play another crucial role as third parties in this process. They ensure all measurements and documentation are carried out under industry standards and applicable laws. They verify the data from the flowmeter and other conditions, such as temperature and pressure, to ensure all measurements are accurate.
Thus, the transfer process facilitates the movement of products and ensures that all parties receive exactly what they trade by contracts and regulations. Regarding surveyors, surveyors in the custody transfer process differ from the Benefits of topographic surveys.
4 TypesFlowmeters forCustody Transfer
Several types of flowmeters are commonly used in the oil and gas transfer process. The following is an explanation, as well as the advantages and disadvantages.
1. Turbine Flowmeter
Typeflowmeter it uses a rotor that rotates in line with the flow of liquid or gas. The rotation speed of the rotor is measured and converted into the volume or mass of the product being moved. Although this tool is quite accurate, the turbine flowmeter requires regular calibration and is unsuitable for all liquids or gases.
2. Ultrasonic Flowmeter
Flowmeter uses ultrasonic waves to measure the product flow speed. The advantage is that there are no moving parts, less wear and tear, and less maintenance. However, this type is quite expensive and requires a more complex installation.
3. Coriolis Flowmeter
This type measures the mass of the moving product, not its volume. This makes it very accurate and is often used in large, high-value transactions. However, the Coriolis flowmeter is very expensive and requires very careful calibration.
4. Positive Displacement Flowmeter
This type works by dividing the product flow into known volumes and counting them individually. This variant flowmeter is the most accurate but expensive, requiring regular maintenance to ensure accuracy.
Why Custody Transfer Must be Accurate and What are the Requirements?
Accuracy in processes and anyone involved in custody transfer It is important to ensure transparency in transactions. If measurements are inaccurate, it can cause huge financial losses for one or both parties.
In addition, each party involved also needs to know the various conditions required in this process, such as:
1. Applicable Regulations
In the process of custody transfer, there are various laws and regulations that must be followed. Minister of Trade Regulation Number 68 of 2018 regarding the measurement and re-examination of measuring instruments, measures, weights, and equipment is often used as a reference in establishing this standard.
This standard covers various aspects, from measuring tools, measuring, weighing, and equipment as well as volume measurements to product quality, including how to calibrate tools, sampling methods, and much more.
2. Gas Density
Gas density greatly influences measurement accuracy. Therefore, this must be measured precisely to ensure appropriate gas traded volume. Errors in density measurements can impact the entire transaction and give rise to legal or financial problems.
3. Sampling
Taking product samples is also very important because it aims to be analyzed to determine product quality. If sampling is not carried out correctly, there could be differences between the actual product quality and the reported one, impacting the transaction value.
4. Measurement of Temperature, Pressure, Volume and Mass Units
All these parameters must be measured with high accuracy. For example, temperature and pressure must be measured because they affect the density and volume of a gas or liquid.
Volume and mass units must also be measured precisely to ensure transaction fairness. Typically, an independent surveyor must routinely calibrate these measurement tools to ensure accuracy.
SUCOFINDO Important Role in Custody Transfer
In the transfer process in the oil and gas sector, many parties are involved, from buyers, sellers, and banks to insurance. However, a very crucial role is that of the independent surveyor. This role is often held by Sucofindo in Indonesia.
As a surveyor, Sucofindo ensures the oil and gas product handover process runs under applicable contracts and standards. Sucofindo also presents field datareal-time.
Sucofindo is the right choice as a surveyor because it has 80 service points throughout Indonesia, experienced personnel who are ISO 17020 certified, and laboratory facilities that are ISO 17025 certified. Our management has also been ISO 9001:2015 certified with good governance.
Apart from that, Sucofindo offers various service solutions needed in the transfer process. This includes loading and discharge process surveys, ship-to-ship surveys, isotank surveys, land-to-pipe surveys, product quality tests, tank cleanliness checks, and bunker surveys.
Closing
With this service, Sucofindo helps overcome problems that often occur in the field, such as differences in quantity or volume, product quality, contamination, and even theft.
If you are in the oil and gas industry and are often involved in the process transfer, choosing the right independent surveyor is key to ensuring your transaction runs smoothly and is up to standard.
Sucofindo, with ISO certification and services throughout Indonesia, could be your choice to ensure fairness, compliance, and transparency in every transaction. For more information on testing and analysis services and the Oil and Gas Mining Sector. You can read our article here. If you and your company need more information regarding our services, contact and consult here.
