Transcript Marathon - CASCA Consulting

Unique Internet Trends &
Solutions for Exploration &
Production
Franz Ehrhardt
Special Advisor, Wellogix Inc.
May 20, 2002
July 17, 2015
Copyright© 2005 CASCA Consulting, L.L.C. All rights reserved
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Agenda
I. Introduction
II. What does Wellogix do?
III. WorkFlowNavigator™ software description and
use case
IV. eField-Ticket™ software description and use
case
V. Proxis™ knowledge management software
VI. Summary
July 17, 2015
Copyright© 2005 CASCA Consulting, L.L.C. All rights reserved
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What does Wellogix do?
Wellogix provides Internet-based software to allow oil and gas
companies and service providers to remotely and collaboratively:
• Capture reservoir summary information, plan well design, and
track well progress
• Communicate and negotiate technical and commercial
aspects of field services
• Reconcile commercial awards, field tickets, and final invoices
• Analyze data generated in the process to determine patterns,
trends, and opportunities
• Discover best practices and implement rules leading to
continuous process improvement
July 17, 2015
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Unique Approach
- Software as a Service
Software as a service (SAAS),
- similar to services such as phone and cable,
- differs significantly from traditional software that is installed
onto desktop, laptop, or server computers:
• SAAS requires no installation, merely a browser and Internet
connection to use the software
• Implementation time is minimal, placing virtually no demands on
the IT department
• Risk is mitigated by cost-effective and time-effective
implementations
• Return on investment is realized much more quickly, due to low
initial costs
July 17, 2015
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WorkFlowNavigator Project and Request Management
Wellogix WorkFlowNavigator
Overview
 Asset team collaborates
online to manage a well
project
Back
Office
Back
Office
 Team specifies needs for
well services, building a
request for technical or
commercial proposal
Oil &
Gas
Oil
& Gas
Company
Company
Service
Company
BENEFITS:
 High data visibility
 Complete data and decision capture
 Better audit trails
Field
Site
 Global access
July 17, 2015
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WorkFlowNavigator Project and Request Management
Wellogix WorkFlowNavigator
Overview
 Asset team sends request to
supplier representative
 Supplier and team
collaborate to build a
response, including
alternative solutions if
needed
Back
Office
Back
Office
Oil
Oil &
& Gas
Gas
Company
Service
Company
Company
BENEFITS:
• Accurate information
• High data visibility
• Complete data and decision capture
• Better audit trails
Field
Site
• Encourages service differentiation
July 17, 2015
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WorkFlowNavigator Project and Request Management
Wellogix WorkFlowNavigator
Overview
 The service company then
sends the proposal online to
the oil company
Back
Office
Back
Office
 At this point the two
companies engage in
dialogue until an agreement
is reached
Service
Company
Oil & Gas
Company
BENEFITS:
• Streamlined communication
• Collaborative service design
• Threaded discussion templates with
attachments
Field
Site
• Better audit trails
July 17, 2015
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WorkFlowNavigator Project and Request Management
Wellogix WorkFlowNavigator
Overview
 Once agreement is reached,
the asset team communicates
the commercial information to
its accounting department
Back
Office
Back
Office
 The procurement personnel
cut a purchase order and
send it to the service
company
Service
Company
Oil & Gas
Company
BENEFITS:
• Integration with back-office systems (SAP,
Oracle, etc.)
• Clear connection between technical,
commercial data
Field
Site
• Better audit trails
July 17, 2015
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WorkFlowNavigator Project and Request Management
Covering 80% of
Typical Well Expenditure
Current Wellogix DynaMap™ Templates
• Bridge Plugs
• Drill Ships
• Cased Hole Logging
• Drilling Fluids
• Casing
• Drilling Rigs
• Casing Accessories
• Formation Evaluation
• Cementing
• Completion Fluids & Filtration
• Inland Barges
• Jack-Up Rigs
• Completion Packers
• Consulting
• Drill Bits
July 17, 2015
• Location
• Mud Logging
Copyright© 2005 CASCA Consulting, L.L.C. All rights reserved
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WorkFlowNavigator Project and Request Management
Covering 80% of
Typical Well Expenditure (cont’d)
Current Wellogix DynaMap™ Templates
• Open Hole Logging
• Submersible Rigs
• Perforating
• Semi-Submersible Rigs
• Platform Rigs
• Sucker Rods
• Pumping Units
• Tubing
• Rat/Mouse Hole
• Tubing Accessories
• Rental Equipment
• Trucking Services
• Retrievable Packers
• Wellhead
• Stimulation
• Workover Rigs
• Submersible Pumps
July 17, 2015
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WorkFlowNavigator Project and Request Management
Wellogix WorkFlowNavigator
Example
 Repsol YPF initiated implementation in first
geographic region on Dec. 23, 2001 in Argentina
 Implementation was completely remote – no
personal visits
 Service providers cooperating enthusiastically
with new methods
 Based on results of phase one, subsequent
implementation initiated
July 17, 2015
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WorkFlowNavigator Project and Request Management
Fast Implementation
and Training
Traditional Software
Wellogix Estimate
Wellogix Actual
Repsol YPF implemented the Wellogix
software and trained all of its users in
Argentina, 8,000 miles away,
exclusively with remote email support from
Wellogix personnel.
= Man Days
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eField-Ticket Invoice Reconciliation
eField-Ticket Invoice
Reconciliation
 The service company
performs the job
 The field representative fills
out an eField-ticket and
submits to the rig supervisor
Back
Office
Back
Office
 The rig supervisor approves
or holds the eField-Ticket
Service
Company
Oil & Gas
Company
BENEFITS:
• eField-Ticket pre-populated with info
from purchase order
• Rapid identification of inconsistencies
Field
Site
• All information in one place
July 17, 2015
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eField-Ticket Invoice Reconciliation
eField-Ticket Invoice
Reconciliation
 Both the oil company and
service company back offices
receive the eField-Ticket
 The service company back
office sends a pre-reconciled
invoice to the oil company
Back
Office
Back
Office
Service
Company
Oil & Gas
Company
BENEFITS:
 All reconciliation information
already captured electronically
 Integration with back office
systems (SAP, Oracle, etc.)
 Better audit trails
Field
Site
 Faster payment cycles
July 17, 2015
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eField-Ticket Invoice Reconciliation
“Super Major”
Oil Company Example
Total Projected Savings based
on their own estimates:
• With 50% invoice payment correction:
Between $12-20 million/year, in the U.S. lower 48
states
• With 100% invoice payment correction:
Between $20-38 million/year, in the U.S. lower 48
states
July 17, 2015
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eField-Ticket Invoice Reconciliation
Automation Savings
$2 million per year
- 240,000 invoices/year in Houston office
- Assumes 75% of invoices through eFieldTicket
- Approximate 75% savings on $15/invoice
(postage, handling, routing, approval, coding,
etc.)
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eField-Ticket Invoice Reconciliation
Invoice Payment Savings
$8.75 - 17.5 million per year *
- Audit: Company overpays invoices by 1 - 2%,
on average
- In U.S. lower 48, this translates to $17.5 - 35
million/year*
- Assumes minimum 50% improvement
through eField-Ticket service
* Based on internal company audit
July 17, 2015
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eField-Ticket Invoice Reconciliation
Operational
Efficiency Savings
$1.3 million per year
- $130,000 in estimated onsite efficiency
savings in initial project
- Assumes $1,000 savings per CAPEX project,
$200 per OPEX project
- Assumes similar scale in other business units
July 17, 2015
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eField-Ticket Invoice Reconciliation
eField-Ticket
Application Example
• Operations:
- BP, Colorado and New Mexico, USA
• Personnel Involved w/Visibility:
- Four drilling foremen, two wellsite advisors, accounts
payable clerk, two asset drilling managers, field analyst,
drilling manager at headquarters
• Wellogix Involvement:
- Training – One half-day
- Billed Consulting Time – None
- Support – Only at specific client request
July 17, 2015
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WorkFlowNavigator Project and Request Management
eField-Ticket
Project Drivers
• Manage costs up front, in real-time
- Raise data visibility
- Give rig supervisors better tracking tools
• Improve invoice reconciliation
- Make all field tickets for a job accessible from one
location
- Attach routing and SAP information to each field ticket.
• Collaborate efficiently with internal team members and
service providers
- Capture dialogue in threaded discussions
• Realize benefits quickly
July 17, 2015
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Integrated Wellogix Solution
Multi-Phase Impact
Across an Organization
Wellogix software crosses departmental boundaries to
provide process improvement across the organization
Plan AFE G&G Mgt. Ops Purchasing Drilling IT Accounting Production
WELLOGIX
Prepare => Procure => Purchase => Perform => Pay => Produce
July 17, 2015
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Proxis™- Knowledge
Management System
Sustainable
Competitive
Advantage
Best Practices
Knowledge Management
Data and
Information
July 17, 2015
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Integrated Wellogix Solution
WorkFlowNavigator,
eField-Ticket, and Proxis
INTERACT
& INDEX
PLAN &
SPECIFY
Continuous
Value
Engineering
PROXIS
July 17, 2015
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RECONCILE
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eField-Ticket Invoice Reconciliation
Executive View:
“One of the benefits of our relationship with Wellogix is their
emphasis on knowledge management and their understanding of its
place in the future of business practices. They have already
developed some effective tools to assist in upstream knowledge
management, and their plans for the future mesh very well with the
tools we'd like to develop.”
- Steve Peacock, VP Upstream Digital Business, BP
“As we continually strive to improve our competitiveness, we
understand that a more integrated drilling process under the roof of
stronger collaboration and knowledge sharing between O&G and
service companies is critical for success. Wellogix can enable these
required capabilities through their tools and integration to third
party applications.”
- Agustin Diz, Director of E&P e-Business, Repsol YPF
July 17, 2015
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Who Benefits from this SaaS?
(Software as a Service)
• Engineers and other asset team members preferring to spend less
time on data discovery and re-entry, but more time finding
hydrocarbons efficiently
• Managers looking for efficient ways to improve their departments’
productivity
• Procurement and accounting personnel seeking faster invoice
reconciliation and streamlined payment cycles
• Executives searching for sustainable competitive advantages,
maximum cost efficiency, and improved corporate results to add
value
July 17, 2015
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Summary
• This software technology can help forward thinking companies,
like PDVSA, as well as its suppliers to significantly improve
business processes
• Primary value proposition includes reduced costs and improved
accuracy/efficiency
• Highly effective, low-time, on-line introduction and training
process expedites the process
• Streamlined, simplified implementation process minimizes risk
factors
Web Site: www.wellogix.com
July 17, 2015
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