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18 July 2019
If you are an upstream oil and gas company that holds non-operator status, you might think that there's less need for systems to control your finance, procurement or asset management. However, that is not true. Even if you are aren't involved in the day to day running of an oil and gas site, there's still an overarching need for a strong financial platform and processes.
Four reasons why you still need oil and gas finance solutions.
- Make savings through automation
By automating those time-consuming manual financial processes – there are considerable savings to be made. Before becoming operators, Impact Oil and Gas made a 50% saving through automation. Later, when they became operators, the savings continued through further automation.
- Curb accounting errors
Manual accounting over multiple spreadsheets opens you up to human error and the risks associated with maintaining multiple versions of the truth. With an automated system like Infor SunSystems, manual interventions are kept to a minimum.
- Reporting requirements
Even though you have non-operator status, you'll still need to track operative spend against Operator Authorisation for Expenditures (AFE's), and you will also be required to produce reports for operating committees regularly together with monitoring your budgets and forecasts. These business-critical activities demand a sound financial reporting solution.
In the upstream sector, organisational structures are continually changing - suddenly, you can find that your company has acquired operational assets and needs to adapt fast. It's also vital that any finance system implemented will support and allow your business to plan for the unexpected such as If your operator becomes unable to trade and you need to take back control, even if it's just temporary, while a new operator is found.
When your status changes your systems and processes must keep working – they should be able to respond and adapt to changing circumstances. For example, while Impact Oil and Gas were shooting seismic, they had the opportunity to become an operator. Impact were already supported by Progressive TSL's implementation of SunSystems Q&A, which helped their finance teams to move seamlessly to working under an operator license.
"Our business is growing fast, and throughout the implementation, we had a number of organisational changes that impacted solution design. Progressive was able to fully flex the solution and provide valuable advice and recommendations on the best way of incorporating our new requirements. Basically, everything was a 'yes' with Progressive."
Robert Wilde, Finance Director, Impact Oil and Gas
Non-operators still need automated systems. You don't want your systems to hold you back from going into operations in the future, and you'll need to ensure that your current system ticks all the requirements for an operator license too.
Whatever status you currently have, Progressive TSL can advise on the best finance, procurement and asset business solutions for you. Contact us to discuss a scalable, flexible solution that will work with your business ambitions.