Abstract Accurate hydrocarbon accounting is essential for optimizing production, maximizing revenue, and ensuring regulatory compliance in the oil and gas industry. However, traditional accounting methods often suffer from data inconsistencies, volume discrepancies, and a lack of real-time availability, leading to inefficiencies in decision-making. This study critically examines current hydrocarbon accounting frameworks by reviewing literature, analyzing best practices, and identifying key gaps in implementation. The Petroleum Industry Act (PIA) 2021 mandates company-wide hydrocarbon reporting for integrated facilities, yet challenges persist in tracking gas liquids/condensates, produced and injected water, and unprocessed crude oil throughout the production process. Addressing these challenges, Aradel Holdings Plc is committed to accurate hydrocarbon accounting and is planning to implement a robust digital transformation strategy within its Ogbele integrated Production facility comprising a modular refinery, a flow station, and a gas plant to mitigate financial, reputational, and operational risks. The planned implementation includes leveraging cloud-based production data management, Wells, Reservoir and Facility Management (WRFM), and digital integration to enhance end-to-end accounting accuracy from the reservoir to the point of sale. This approach is expected to improve data integrity, facilitate real-time monitoring, and minimize discrepancies in reported volumes. By highlighting Aradel's commitment and drawing on the experiences of other companies that have successfully implemented these technologies, this study offers valuable insights for oil and gas firms seeking to modernize their hydrocarbon accounting systems and navigate the evolving energy landscape.
Akuagwu et al. (Mon,) studied this question.