The Petroleum Revenue Tax (Attribution of Blended Crude Oil) Regulations 2006 No. 3312

Allocation of blended oil lifted

4.—(1) For each lifting of blended oil by a participator in an originating field, the amount to be allocated to each originating field in respect of that lifting is—

• 

• Here—

  A is the volume of blended oil of a particular blend lifted by the participator in that lifting;

  B is the total volume of the participator’s production entitlement for that blend from the originating field for that month; and

  C is the sum of—

  (a)

  the participator’s production entitlements from all originating fields for that blend, and

  (b)

  so much of the seller’s production entitlement in respect of oil of that blend for that period as the participator is entitled to lift under period of entitlement contracts,

  but where an entitlement in respect of an originating field is a negative amount that entitlement shall be treated as zero in computing C.

These definitions are subject to the following qualifications.

(2) Where oil is lifted under a period of entitlement contract or a term contract regulation 5 applies.

(3) The final volume produced by application of the formula in paragraph (1) may be adjusted (up or down) by the participator by up to a maximum of 1000 barrels.

But the sum of the adjusted volumes in respect of each allocation must equal the total volume of blended oil lifted.