What is incapable oil well in SAP IS-OIL-PRA-REV - Revenue?

SAP Term: incapable oil well

• Component: IS-OIL-PRA-REV

• Component Name: Revenue

• Description: An oil well that cannot produce an average of more than 25 barrels of oil per producing day and produces 50 percent or more salt water salt water production must be equal to or greater than oil production.

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• Key Concepts: 
  Incapable oil well is a term used in the SAP IS-OIL-PRA-REV Revenue Recognition component. It refers to an oil well that is not capable of producing oil or gas in commercially viable quantities. This means that the well is not able to generate enough revenue to cover its operating costs. 
  
  How to use it: 
  Incapable oil wells are typically identified during the exploration phase of an oil and gas project. The SAP IS-OIL-PRA-REV Revenue Recognition component can be used to track and manage the revenue recognition process for these wells. This includes tracking the costs associated with exploration, drilling, and production, as well as any revenue generated from the sale of oil or gas produced from the well. 
  
  Tips & Tricks: 
  When using the SAP IS-OIL-PRA-REV Revenue Recognition component, it is important to accurately track all costs associated with an incapable oil well. This will ensure that any revenue generated from the sale of oil or gas produced from the well is accurately accounted for. 
  
  Related Information: 
  The SAP IS-OIL-PRA-REV Revenue Recognition component can also be used to track and manage revenue recognition for other types of oil and gas projects, such as production sharing contracts and joint ventures. Additionally, it can be used to track and manage revenue recognition for other types of projects, such as construction projects and service contracts.