In the oil and gas industry, every drop counts. While it’s easy to discover what goes missing on the journey from oil field to gas pump, keeping track of where it’s going, who’s receiving what and how much goes to waste remains a key challenge for many energy companies.
A leading U.S. petroleum and natural gas company had to allocate its production across several business partners. It relied on human effort to prepare production data, which involved risks such as operations and production data being mixed together. So, when the company needed to study production data, people had to work overtime to separate the two. This also made it difficult to comply with Sarbanes-Oxley Act regulations. The company’s existing production accounting processes and platforms were ill-equipped to handle its complex production allocation and reporting needs and prevented it from identifying potential revenue areas. Our Oil & Gas technology experts stepped in to help.
Cognizant worked with the client to harmonize its business processes and implement a digital hydrocarbon accounting platform, which provides complete reconciliation of actual quantities of hydrocarbon produced and sent for export, storage, consumption and allocation back to the wells. The platform accurately determines the ownership and corresponding revenues for each partner and processes data in other departments. It’s now also easy to report for Sarbanes-Oxley and other legislative requirements.
To obtain a proper picture of its operation, we captured the client’s end-to-end requirements for hydrocarbon production and accurately modeled both field arrangements and product-sharing contracts. We performed exhaustive quality assurance testing and user training to enable a smooth shift to the digital platform. This resulted in an on-time and on-budget implementation.
After adopting our digital hydrocarbon accounting platform, the company now enjoys 100% accuracy in production accounting and revenue generation, an extra 0.5% margin of production, regulatory compliance and the ability to easily scale and configure applications to any future amendments.
accuracy for allocation and revenue reporting
user efficiency, time savings and scalability
extra margin of production through enhanced accounting
through configurable application design and customization
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