- Combined Fixed Rate (CFR) for Drilling
- Combined Fixed Rate for Producing
- Flat Rate
These rates are specified at the joint operating agreement level (JOA),and they are applied to all expenses booked to unexcluded accounts andjoint ventures within the JOA when you execute cost calculationsprocessing for the period.Precondition
The escalatable indicator must be set on for Cost Calculation Data onJOA level.
As part of specifying cost calculations for the JOAs within yourcompany, you must specify values (e.g., threshold depths and rates) fordrilling and producing statistical ratios.
A prerequisite to specifying these values on the JOA level is definingthe ratios themselves in JVA configuration (Processing > CostCalculations > Drilling or Producing Key Figures).
Actuals for drilling and producing wells are booked in CO during theperiod.
Output
When you execute Automatic Overhead Rate Escalation with Updateselected, the rate you enter in the Percentage Change field will beapplied to the overhead flat, drilling, and producing rates (specifiedat the JOA level) for the company or the range of JOAs within thecompany specified on this screen.
Example
For JOA 100001, the following drilling and producing rates have beenspecified for cost calculations at the JOA level:
Drilling Rate: 15% Producing Rate: 10%
Automatic Overhead Rate Escalation is executed with 20% entered in thePercentage Change field and Update selected, resulting in the followingchanges to these rates for JOA 100001:
Drilling Rate: 18% Producing Rate: 12%