Field Production Guidance Note

Field Production Guidance Note

PETROLEUM AND OTHER FUELS REPORTING SCHEME

Guidance Note for Field Production Activities

Section One:Introduction

From 1 January 2018, businesses, who undertake covered activities in relation to covered products, are required to report to the Australian Government Department of the Environment and Energy if they meet the criteria set out in the Petroleum and Other Fuels Reporting Act 2017 (the POFR Act) and the Petroleum and Other Fuels Reporting Rules 2017(the POFR Rules).

Legislation and meaning of terms

Many of the terms used in this guidance note are defined in the POFR Act and the POFR Rules, including ‘covered product’, ‘covered activity’ and ‘Australian field’.

The POFR Act can be found at: https://www.legislation.gov.au/Details/C2017C00348, and the POFR Rules at: https://www.legislation.gov.au/Details/F2017L01469.

In this guidance note, ‘business’ has the same meaning as ‘regulated entity’ under the POFR Act.

Who must report?

Under section 16 of the POFR Rules, the owners of crude oil, condensate and liquefied petroleum gas (LPG) produced from, or held at, Australian fields are required to report production information for the purposes of section 11 of the POFR Act.It is permissible for owners to delegate responsibility for reporting and it is anticipated that the operatorof a field or project would be the most appropriate business to report consolidated production data on behalf of all product owners.

If you are unsure whether you need to report, please contact the Department to discuss.

Currently, natural gas is not a covered product under the POFR Rulesand therefore reporting its production is not mandatory. The Department encourages businesses producing natural gas to report on a voluntary basis as the data collected is very useful to industry, governments, investors and academics. The future inclusion of natural gas as a covered product under the scheme is under review.

When and how to submit reports.

Reports are due 15 days after the end of the calendar month being reported. Businesses must use the Department’s Field Production reporting template to report their activities and completed reports must be sent via email to

If you require assistance.

You can find out more information about mandatory reporting at www.environment.gov.au/energy/energy-security-office/international-engagement/mandatory-reporting-petroleum-data.

You can find out more information on the petroleum statistics produced by the Department at: www.environment.gov.au/energy/petroleum-statistics.

If you require further information, please email the Department at or call 02 6274 2500.
Section Two:Completing the Template

General instructions

When completing the template, businesses should enter data into the plain white cells. Green cells in the template automatically generate totals and sub-totals, but these can be overwritten if necessary. Grey cells are locked and cannot be edited. There is a comments section beneath the main table which allows free text entry and can be used to supply additional information.

Please enter your business’sname and the month and year that the report relates to at the top of the “Crude Oil” section. This information is automatically copied to the other sections.

Units of Measure

All volumetric data must be adjusted to standard temperature and pressure conditions i.e. 15 Celsius (C) and one atmosphere of pressure (101.325 kPa).

Liquids

Businesses must report liquids data (including LPG) in whole kilolitres (no decimal places) and must also report each covered product’s average density in kilograms per litre.

If the density for each product is not readily available each month, the most recent density measurement should be used. If no measurement is available, a typical or average value may be entered, which should be reviewed and updated as appropriate.

Gas

Businesses should report gas data in thousands of cubic metres (no decimal places) and also report each product’s gross calorific value (GCV) in megajoules per cubic metre.

If the GCV for each product is not readily available each month, the most recent measurement should be used. If no measurement is available, a typical or average value may be entered, which should be reviewed and updated as appropriate.

Reporting Difficulties

Businesses with difficultly reporting should contact the Department as early as possible to discuss the issues and options to resolve them. Please email the Department at call 02 6274 2500.

Reporting concepts (columns)

Field / A hydrocarbon rich area that may be exploited by multiple wells and possibly by more than one independent business entity.
If an operator is reporting on behalf of all the owners in a joint venture, they should report the total production from the field regardless of ownership.
Project / If two or more fields are linked to a common project, businesses may report at the project level.
If an operator is reporting on behalf of all the owners in a joint venture, they should report the total production from the project regardless of ownership.
State / The state in which the field/project is located. If a project or field straddles multiple states, the amount produced in each state should be estimated on a separate line in the table.
Average density. / Report the weighted average density in kilograms per litre (Kg/L) for each product during the month.
If the density is not readily available each month, the most recent density measurement should be used. If no measurement is available, a typical or average value may be entered, which should be reviewed and updated as appropriate.
To convert API to Kg/L:
Density (Kg/L) = 141.5 ÷ (131.5 + API)
Month Opening Stocks and Closing Stocks / The actual physical amount held in storage at the beginning and end of the month. For both opening and closing stocks only one figure is required for each product at each field/project.
Include stock held in any tanks or facilities associated with the field, including stabilisation units, holding tanks, etc.
The opening stock of the current month should always be identical to the closing stock for the previous month
Product produced at the field. / The total volume produced at the field, excluding any water, sediment or volumes that were re-injected into the formation but including dissolved gases and contaminants.
<Product> consumed as fuel at the field / The total volume of product that was produced from the field and was consumed as fuel to provide power at the field.
If the fuel powers multiple fields please report the total consumed under one field and note the other fields that were powered in the comments section. Excludeany fuel that was not produced at the facility.
<Product> delivered from the field. / The total volume of marketable product that was delivered for domestic consumption or export. Exclude any amount re-injected, flared, consumed as fuel, destroyed or otherwise disposed of.

Product definitions (tabs)

Crude Oil / A mineral oil of natural origin comprising a mixture of hydrocarbons and associated impurities, such as sulphur. It exists in the liquid phase under normal surface temperature and pressure and its physical characteristics (density, viscosity, etc.) are highly variable.
If any condensate or LPG is commingled with the crude oil stream then that should be included in this category.
Condensate – Field / A mixture of lower molecular weight hydrocarbons that are recovered from surface separation facilities at or near the field.
Only separate streams that will be marketed as condensate should be reported here.
If condensate is blended or commingled with a crude oil stream then the production should be included in the crude oil category.
Liquefied Petroleum Gases (LPG) - Field / LPG consists mainly of propane, butane or a combination of the two. LPG are normally liquefied under pressure or refrigerated for transportation and storage.
Only streams that are produced and separated at or close to the field and that will be marketed separately as propane, butane or LPG should be reported here.
Where possible, separate volumes for propane and butane should be reported.
If LPG is blended or commingled with a crude oil stream then the production should be included in the crude oil category.
Section Three:Confidentiality of Information

The Department will treat information provided by businesses securely.

Legislative Protections of information

The POFR Act contains a range of safeguards to ensure that personal and commercial-in-confidence information is protected.

Fuel information that is reported by businesses under the POFR Act that is commercial-in-confidence (as defined in section 6 of the POFR Act) or personal information, is ‘protected information’ for the purposes of the POFR Act. If this information is provided under a data sharing arrangement between the Department and another government agency it will also be 'protected information' under the POFR Act.

Part 4 of the POFR Act prohibits the recording, use and disclosure of protected information by an entrusted person (or former entrusted person) unless it is permitted under the POFR Act, another law of the Commonwealth or law prescribed in the Rules by a State or Territory. If this prohibition is breached, a penalty of up to two years imprisonment may apply. An entrusted person under the POFR Act is the Secretary of the Department, APS employees, contractors or consultants engaged by the Department.

Some of the circumstances in which protected information may be used, recorded or disclosed include:

  • recording, using or disclosing by an entrusted person in the course of their duties as an entrusted person;
  • making a record or using the protected information for the purpose of publication or making available fuel information under section 16 of the POFR Act;
  • disclosure by an entrusted person to the Minister responsible for administering the POFR Act;
  • disclosure to the ACCC, the ATO and other agencies prescribed in the POFR Rules;
  • disclosure with the consent of businesses;
  • disclosure to a court or tribunal or other authority for the purposes of proceedings or in accordance with an order of such a body;
  • disclosure for law enforcement purposes.

Operational Safeguards

The Department is bound by secrecy and disclosure provisions in the POFR Act and the PrivacyAct 1988. The Department will take appropriate measures to ensure that the protected information is managed consistently with this legislation.

Some of the safeguards that the Department will put in place to keep the information secure are:

  • data collected is de-identified for analysis and statistical compilation.
  • data is grouped (aggregated) to produce statistical estimates at the national level and at state level.
  • a statistical estimate (at state or national level) cannot be made up of data from fewer than three data providers.
  • only entrusted persons under the POFR Act will have access to protected information.
  • entrusted persons under the POFR Act will be trained in their obligations under the POFR Act will be deemed competent in the Departmental operational protections for protected information.

The Department has a strong relationship with Industry and industry peak bodies, and will work in partnership with Industry to build confidence in the effectiveness of the Department’s operational safeguards.

A copy of the Department’s privacy policy can be found on the website at http://www.environment.gov.au/privacy-policy. Any complaints regarding the handling of personal information collected under the POFR Act should be directed to:

Privacy Contact Officer
Department of the Environment and Energy
GPO Box 787
CANBERRA ACT 2600

Phone: 02 6274 2603
Email:

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