Oil & Gas JV: wells, partners, AFEs, joint interest billing and cash calls

#Purpose and scope

This chapter covers the Oil & Gas JV module. The address /oil-gas-jv redirects to Oil & Gas; the module key and API use oil-gas-jv while the pages live under /oil-gas. The Operator runs day-to-day operations, pays costs up front and bills partners back through a Joint Interest Billing (JIB); a Non-Operator owes its working-interest share.

#Before you start

1. A cost recovery ledger for each well. A JIB credits it.
2. A partner ledger (AR for the Operator, AP for a Non-Operator) for every partner. It must exist in the company.
3. Costs on the well. Other modules count toward a JIB when their cost journal is reference-stamped to the well (reference type “well”); only posted, non-cancelled, non-reversed journals dated within the period are counted.
4. Permissions (granted to the JV-ACCOUNTANT role): oil_gas_jv.afe.submit, .afe.approve, .afe.close, .jib.generate, .statement.issue, .cash_call.create, .cash_call.fund and view permissions.

#1. Wells and partners

1. Create a well in Wells with a code, name, location and the Cost Recovery Ledger. Tick “This tenant is the Operator” if you run the well.
2. Add the co-owners in Partners: partner name, working interest %, partner ledger and active flag.

#2. Authorization for expenditure (AFE)

1. Create an AFE in AFEs with a unique AFE number, the well, the estimated amount (greater than zero) and optionally Block billing over this AFE.
2. Submit it (needs oil_gas_jv.afe.submit). If an active OILGAS-AFE approval workflow exists it starts; otherwise decide it manually with Approve or Reject (needs oil_gas_jv.afe.approve).
3. Close an Approved AFE when spending is finished (needs oil_gas_jv.afe.close).
4. The decision history shows every submit and decision; the variance view compares the estimate to billed JIB cost.

#3. Cash calls

1. Open Cash calls and raise a call against an Approved AFE: total amount to call (greater than zero) and a due date that is not in the past.
2. BSuit splits the amount across active partners by working interest so the rows add up exactly to the call.
3. When a partner pays, choose Record funding: amount received, received date, instrument (cash, bank transfer or cheque), reference, the bank or cash ledger received into, and an idempotency key. BSuit posts a Finance receipt (debit bank or cash, credit the partner’s ledger).

#4. Joint interest billing (JIB)

1. Open JIB, choose the well, the period start and end, and optionally the AFE and a narration.
2. Preview the split. Nothing is written. Warnings and blocks (overlapping period, AFE limit, mixed currencies) are shown here.
3. Generate. BSuit sums the well’s posted costs for the period, splits them by working interest and posts one journal per partner (debit partner AR, credit the well’s cost recovery ledger), all in one database transaction. A failure rolls everything back.

#5. Partner statements

On Partners open a partner’s statement to see its JIB lines (optionally for a period) with a running billed total and the AFE reference. Billed, not billed minus collected. Issue the statement (needs oil_gas_jv.statement.issue) to lock a permanent point-in-time copy of what was sent, which later JIB corrections do not change.