Expert Determination for a Water-in-Oil Dispute

Water-In-Oil Allocation Dispute

Phil Stockton, assisted by other Accord personnel, was appointed in accordance with the terms of the measurement and allocation agreement, as the Expert by the Energy Institute to resolve a dispute between two Joint Operating Companies: JOC A and JOC B.

The dispute centred around the allocation of crude oil and gas quantities between two fields, particularly concerning the water-cut reported for one of the measured wet oil streams upon which the allocation was based over a thirteen-month period. The issue was whether the agreed laboratory procedures for determining water cut were properly applied during this period. The Expert's role was to determine if there had been a mis-measurement and to quantify any consequent mis-allocation.

The determination process involved extensive data gathering and analysis, including meetings with the disputing parties, visits to an independent laboratory, and review of supplementary documentation. It was found that the laboratory had committed calculation errors, leading to incorrect water cut values.

This was further confirmed by reviewing independent water in oil data and employing a variety of data analysis techniques.

The Expert concluded that a mismeasurement had indeed occurred in all months of the disputed period except one. Revised water cut values were calculated, and the reasons for the discrepancies were detailed, including procedural non-compliance by the laboratory and erroneous test methods.

Accord is completely independent and is not a subsidiary of any other enterprise in the energy sector — meaning our work, advice and recommendations are always impartial and unaffected by any obligation or prior preference. With a global reputation for delivering successful allocation projects, Accord instils confidence in stakeholders, helping them accept the solutions provided.

In collaboration with all involved parties and through rigorous data analysis, the Expert successfully facilitated the resolution of the dispute, ensuring a thorough and fair determination process.