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SAP OIL AND GAS New
SAP OIL AND GAS New
BY PRA CAPABILITY
Introduction
The petroleum industry is usually divided into three major
components:
Upstream, midstream and downstream.
Midstream operations are usually included in the downstream
category.
Down Stream
• The downstream oil sector is a term
commonly used to refer to the refining of
crude oil, and the selling and distribution of
natural gas and products derived from crude
oil. Such products include liquified petroleum
gas (LPG), gasoline or petrol, jet fuel, diesel
oil, other fuel oils, asphalt and petroleum
coke.
Up Stream
• The upstream oil sector is a term commonly used
to refer to the searching for and the recovery and
production of crude oil and natural gas. The
upstream oil sector is also known as the
exploration and production (E&P) sector.
• The upstream sector includes the searching for
potential underground or underwater oil and gas
fields, drilling of exploratory wells, and
subsequently operating the wells that recover
and bring the crude oil and/or raw natural gas to
the surface.
• The well is treated as Master data in SAP.
• The transaction code associated with is
Joint Venture
• Definition
• A joint venture in the SAP System is a summarization of
cost objects whose costs are split up among partners.
• A joint venture is usually lead by an operating
authority, who is responsible for the costs incurred. At
the end of a period, all of the costs incurred are split up
and allocated to the partners involved.
• Joint ventures are created to keep costs as low as
possible for the operating authority and the partners.
This is achieved by distributing the costs incurred to
the participants of the joint venture.
Example
• Especially in the US market, large numbers of JV's occur. Within the JOA,
the partners agree on their shares of ownership (equity groups) and the
rules to apply for overhead calculations.
• There can be any number of JOA's within one company code and any
number of JV's within one JOA. One JOA can only belong to one company
code and a JV to only to one JOA.
• Example
• OP - Operated JOA
• NP - Non – Operated JOA
• CP - Corporate JOA
• Each JOA class has a number range which can have an internal or external number.
• The JOA class must exist before a JOA can be created within the class.
• The JOA class cannot be changed after the JOA has been created.
• Joint Operating Agreement (JOA)
• A JOA is a formal agreement that specifies the conditions for a joint
operation. This covers the interests of the partners and their properties, as
well as overheads and penalties.
• Joint Venture
• This is an association of two or more partners, formed to share a venture’s
risks, costs, and revenues. Each partner’s share is proportional to their
undivided interest in the venture.
• Equity Type
• The JOA has different development stages, such as engineering and
design, construction, and production. Different partners participate at
each stage. JVA manages the different stages by using equity types. An
equity type explains a particular association of partners. This definition
may be related to time, phase or purpose and is linked with a specific
equity group.
•
• Equity Group
• An equity group represents an association of venture partners and their
interests. An equity group may consist of all or some of the venture
partners.
• Joint Venture Partner
• This is a partner mentioned in the JOA with an undivided interest in a
venture. One partner, called the operator, manages the operation. The
remaining non-operating partners share expenses and revenues.
• Recovery and Billing Indicators
• You assign a recovery indicator to a cost object to indicate whether or not
expenses, posted using the cost object, are billable to JVA partners. You
assign billable costs to the appropriate partners. Non-billable expenses are
assigned to the operator. Billing indicators are assigned to billable postings
and identify the type of posting involved, including cash call, normal
expenditure, and audit adjustment.
• There are five types of joint ventures or Venture types. Each type is used to identify
a different form of ownership. The venture types are described in the following
table: