CTX - Materials & Cost Control
Due to the complexity of service charges and the uncertainties when drilling wells, typically less than 20% of Purchase Order spend contains detailed line items, e.g. tangibles.
Complex rentals and services are on 'limit' POs and often mobilized via email or verbal instruction and tracked via spreadsheets when the rig requests equipment.
Control of materials and costs becomes difficult with complex spreadsheets an inadequate solution to allow supply chain, finance and well team to track equipment, costs and process payments.
Wells may not be reconciled for months, resulting in unidentified cost overruns coming to light, often long after the well has been completed.
CTX solves these issues by helping to optimize materials and logistics processes (driven by cost) and accurately tracking costs on a daily basis.
- Real time awareness of Expenditure
- Single Point of Control
- Track all costs including rentals
- Prevent retrospective POs
- Underpins existing ERP processes
- Enables fast verification of invoices
- AFE vs committed, tracked & invoiced
- Facilitates well reconciliation, VOWD and forecast of final well cost
- Detail for audit and cost recovery
- Visibility of high cost rentals
- Complete awareness of spend against AFE in real time
- Detailed data supports creation of future well planning AFEs
- Visibility supports proactive logistics and offhiring of equipment
- Capture invoice errors with independent verification of spend
- Allows teams to focus on operations