Abstract

Custody transfer metering is part and parcel of the petroleum production operations. Every cubic metre of hydrocarbon produced has to be accurately measured. Measurement systems in the oil and gas industry have developed rapidly in terms of sophistication and usage of modern technology and Malaysia has to keep abreast of this development to ensure not only the accuracy of measurement, but also the reliability and accountability of the measurement systems.

Introduction

Sales or custody transfer metering generally forms the basis for contractual arrangements between sellers and buyers, different producers and owners, and governments. The quantity of oil or gas that passes through the delivery point, and the amount of money that changes hands would depend almost exclusively on the measurement registered by the metering system.

In Malaysia, oil production started in 1910. However, it is only recently that metering has become a subject of very close scrutiny. This can be attributed to the following reasons:

  • PETRONAS' requirements for the highest possible accuracy and standard of measurement;

  • The price of crude oil has greatly increased over the last 10 years;and

  • Advances in electronics have resulted in many improvements in the design and control of metering systems.

PETRONAS, the Malaysian National Oil Company, has the full ownership and PETRONAS, the Malaysian National Oil Company, has the full ownership and the right to explore, produce and sell petroleum and petroleum products. PETRONAS has therefore the unique responsibility to ensure that its PETRONAS has therefore the unique responsibility to ensure that its contractors explore, produce and operate the oil and gas fields in a workmanlike manner and in accordance with international and industry standards.

PETRONAS has issued several operating procedures and guidelines governing PETRONAS has issued several operating procedures and guidelines governing certain aspects of its contractors' operations. These procedures cover the areas of exploration, production, transportation, processing and export of oil and gas. In formulating the guidelines and procedures for metering, PETRONAS has drawn on the experience of other oil and gas producing PETRONAS has drawn on the experience of other oil and gas producing countries. This is to ensure that the guidelines and procedures are technically acceptable and are being practised in other parts of the world.

p. 5–85 p. 5–85

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