What is overriding royalty interest in SAP IS-OIL-UOM-OWN - UOM Ownership?

SAP Term: overriding royalty interest

• Component: IS-OIL-UOM-OWN

• Component Name: UOM Ownership

• Description: Ownership in a percentage of production or production revenues, free of the cost of production, created by the lessee, company and/or working interest owner and paid by the lessee, company and/or working interest owner out of revenue from the well.

Smart SAP Assistant

• Key Concepts: 
  Overriding royalty interest (ORI) is a type of ownership interest in oil and gas production that is granted to a non-operator. It is a contractual agreement between the non-operator and the operator of the oil and gas production. The non-operator receives a percentage of the production revenue, usually in exchange for an upfront payment or other consideration. 
  
  How to use it: 
  The IS-OIL-UOM-OWN UOM Ownership Management component in SAP allows users to manage ORI agreements. This includes tracking payments, calculating royalties, and managing ownership interests. The component also provides reporting capabilities to help users analyze their ORI agreements. 
  
  Tips & Tricks: 
  When setting up an ORI agreement, it is important to ensure that all parties are aware of their rights and obligations under the agreement. This includes understanding the payment terms, royalty rates, and other details of the agreement. Additionally, it is important to ensure that all parties are in compliance with applicable laws and regulations. 
  
  Related Information: 
  For more information on ORI agreements, please refer to the SAP Help Portal or contact your local SAP representative. Additionally, there are many resources available online that provide more detailed information on ORI agreements and how they work.