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Allocation Management The Elegance of the Axio Solution is more than a match for Allocation Complexity

The production allocation process has become dramatically complex. The days of the once simple single well from a single zone with only a few stakeholders and perhaps one tax regime are no more. What once was plain and simple has become convoluted and confusing.

Economics dictate the allocation methods used today and in the future. Fewer offshore platforms and a smaller footprint on the environment force the commingling of various fluids from different wells and well zones into a common process stream. Common wells now have a number of shareholders with various levels of ownership and complexity increases again with the various tax regimes and royalties figured into the equation at common wells have increased. With the increased complexity, the uncertainty allocation method traditionally used to account for different accuracy levels of measurement equipments and systems has become unfair and unreliable.

The Axio Alliance provides unprecedented service and allocation support via a team of seasoned industry professionals with a long track record and commitment of providing independent, fair, equitable, audit-tested and proven production measurement allocation applications.

Axio minimizes risk as well as reduces and contains allocation imbalances. We bring all of the shareholders together to provide allocation solutions that are fair and equitable from concept to implementation and commissioning.

With Axio Allocation, your company benefits from our:

Decades of allocation, measurement and analytical services experience with a specific commitment to compliance regulatory obligations set forth by state and federal agencies including the MMS., Axio maintain active memberships and have participants on Working Committees for API, GPA and ASTM, ISHM, ASGMT, SPE as well as other organizations.
Full suite of professional allocation services. Axio is postured to minimize risks as well reduce and contain imbalances that have a direct impact on production earnings.
Development and administration of Production Handling Agreements (PHA), contractual development and administration, regulatory compliance reviews and filings and the actual development of the production allocation methodology. Further, we are experienced in Quality Bank administration, production allocation, gas plant allocation and both production and plant accounting.
Professional services including the review and verification of PHA billings, the review quality banks for gas and oil, the production and maintenance of process mapping from the primary element through final billing and the documentation and findings of flow data throughout the month. We are also involved in quantifying metering and sampling errors as well as recommending corrective action plans.
Depth of experience. Currently, our allocation professionals are performing 97% of the Gulf of Mexico condensate allocations. This involves 650 active offshore platforms, 14 deepwater hubs and 26 pipelines. Axio Alliance support also administers quality banks. These banks are commonly used when multiple producers introduce separate production streams into a single pipeline. The banks make monetary adjustments among producers to compensate for commingling of different hydrocarbon qualities. This provides an equitable solution of charging shippers with low quality product who benefit from commingling, and distributing the proceeds to shipper of high quality product whose quality value is degraded by the commingling process.
Focus on the identification of risk, liabilities and losses. Axio strives for contractual compliance to limit any negative audit findings or regulatory and civil penalties. We are trained to seek out additional revenue opportunities and we seek to lower the client’s administrative costs through process improvements and the reduction of redundancies.

Axio provide all of the expertise for our support and services under one roof. The Axio allocation service group is an unbiased third party.

Allocation
Management Benefits

Experience and commitment to regulatory obligations and standards
Development and administration of Production Handling Agreements
Contain production imbalance with sound field operations
State-of-the-art Process Simulation Modeling with tuned EOS
Scalable management process from wells, to Hubs, to pipeline systems allocation
Administration of quality banks, API and Sulfur