Refining Processes Handbook

REVERSE ALLOCATION

  1. The absolute values of all balancing-grade (including loss) deltas are added to obtain the absolute value of combined total deltas (AVCTD).

  2. The ratio of the absolute value of delta for each product and AVCTD is multiplied by the total imbalance (sum of delta allocations) to obtain the reverse allocation of that product for the other participant. The sum of such reverse allocation for each participant is equal to and of opposite sign to that participant s total imbalance (sum of delta allocations), accordingly eliminating the imbalance.

  3. The total allocation of each participant is the sum of the retrospective DOP plus the sum of allocations for such product made under steps 3 and 4.

The preliminary product allocation is now complete.

Example 16 4: PRELIMINARY ALLOCATION

Two participants, AOC and BOC, run a 250 mbpd oil refinery. Participant AOC has a 210 mbpd refinery capacity and participant BOC has a 40 mbpd refinery capacity. The refinery is operated as a joint-ownership refinery as per their processing agreement (see the Appendix). The entire product allocation procedure for effecting their preliminary allocation is shown in Tables 16 1 to 16 8.

Table 16 1: Refinery DOP (All Figures in Barrels)

PRODUCT

AOC

BOC

TOTAL

1138B

60000

46590

106590

1149B

0

0

0

150

17839

0

17839

201

0

864

864

210

946831

227578

1174409

220

0

0

0

383

0

0

0

390

76800

0

76800

395

0

0

0

397

512647

80716

593363

397E

0

0

0

398

44100

0

44100

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