Custody Transfer (also known as Fiscal Metering) in the oil & gas industry refers to the transactional transfer of a substance, raw or refined, from one party (owner) to another.
Typically when a custody transfer is taking place, the end goal is to determine the value or payment between two parties for the physical substance (gas or liquid) that has exchanged hands via pipeline. For that reason, the flow instrument that measures the total amount of product changing ownership can be viewed as a cash register between the two parties.