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Production Audit

Production audit refers to the comparison of Producer’s reported production quantity against published government production record, from the previous month, to calculate a production deviation ratio.

According to the production deviation ratio, the Producer's collateral will be deducted if applicable, and the reported production quantity will be adjusted to align with the result of the production audit.

How is a production audit conducted?​

  1. Each asset class has its own asset data module for data processing and audit. Here, the OilData and GasData modules are utilized, in tandem with the Oracle module.

  2. Producers can use an automated Tool, the ProductionData Uploader for reporting each natural gas and oil well’s daily production.

Notice: Treasurenet automated Tool requires connection to industry accepted production recording hardware and data service.

  1. Monthly, an automated Tool, the Oracle Feeder Tool, will fetch the production data of that well from the whitelisted government publications;

  2. The OilData and GasData module will compare the reported values and published values to calculate the production deviation ratio for the month;

Production deviation ratio = (Producer's reported production stored on the chain - whitelist reported production) / whitelist reported production \_ 100%

  1. Calculate the verified production quantity and its corresponding market value based on the production deviation ratio for the month;

  2. Deduct collateral, if applicable, according to the production deviation ratio

How to start a production audit?​

  1. In the WellManagement page of the Producer Portal, Producers select and click [Mint TAT].

  2. Choose [yes] in the pop-up window

  • This will trigger the audit action for that month's production.
  • The system will mint the corresponding TAT according to the production audit result.

Production Audit Frequency and TAT Minting Limitations​

The production audit process and subsequent TAT minting are directly tied to government production data updates. This creates a natural frequency limitation for TAT minting:

  • Production audits can only be conducted after government production data becomes available (typically monthly).
  • Producers cannot mint TAT until the production audit is completed successfully.
  • The timing of TAT minting is therefore dependent on when government agencies publish their official production records.

What happens after TAT is minted?​

Once TAT is successfully minted following a production audit:

  • The minted TAT tokens become available in the Producer's wallet.
  • These tokens can be used to participate in BID processes to become Super Validators.
  • TAT serves as on-chain proof of the Producer's asset production history and creditworthiness.
  • The tokens can be utilized for various ecosystem functions including collateralization, TCash minting verification, and pool creation in the Otter platform.