Best Practice

The organisational structure in oil and gas companies is frequently represented by regional assets supported by central shared services. The latter must make available a suite of best practice business processes and recommended standard terms and conditions for tender and contract documents.

The ProCon Tender Management Module houses the best practice business processes, tailored for each ProCon customer. This is an efficient conduit for delivering these to the regional assets. Likewise, the standard tender and contract clauses are maintained and updated in the ProCon libraries so that asset and project based teams have access to current policy at the click of a button.

Corporate Governance

Many oil and gas operators have a US listing and therefore must comply with Sarbanes Oxley legislation. Elsewhere, corporations have defined their own standards in corporate governance requirements. Shareholders are increasingly demanding that management within these corporations adhere to the highest standards when issuing high value contracts.

The audit trails in the ProCon Tender Management Module and Contract Management Module give peace of mind to those in management who must sign letters of assurance and compliance with Sarbanes Oxley that controls are in place and are followed in issuing these high value contracts.

New Contracting Relationships

Contract strategies are moving towards risk sharing and collaboration between operators and contractors in order to maximise value across the project. Fixed lump sum strategies are being replaced by contracts that offer contractor performance incentives. It is imperative that the operator and contractor are using real time information in the fast paced project environment.

The ProCon e-business module permits the contractor to work closely with the operator. All contract communications, variations, meeting minutes are communicated real-time across the system so that all parties to the contract are using current information.

Managing Supplier Relationships

Oil and gas operators are rationalising the volume of contractors that they engage in business with across the globe. Operators need to manage the current contractor profile on a real time basis and to be in a position to have visibility across the global group with regard to global business relationships with particular contractors.

The ProCon Supplier Management Module enables suppliers and contractors to self register and pass through the prequalification process and maintain their profile on a real time basis.

Investment Protection

The global oil and gas industry is investing in excess of $350bn in capital projects per annum. Typically, 70% of this investment is tied up in EPC and EPCM contracts engineering and procurement companies. Operators want visibility into how this investment is being managed and advance warning of potential calls for additional investment through contract cost overruns post award of contract.

The ProCon Contract Management Module has sophisticated features to capture all post award potential cost overruns at source and roll these impacts on investment up into a corporate contracts dashboard. This management portal provides accurate up to the minute information in a consolidated format at the click of a button.

Multiple Currency Contracts

Contracts are frequently issued in multiple currencies with associated currency risk hedging requirements. The corporate finance team is challenged with managing effective currency hedging in a world where foreign currency contract variations are unforeseen until they are actually realised.

The ProCon Contract Management Module captures all contract variation proposals at source and reports on the same.

Globally Accessible Contract Movements

Contract communications, movements in relationships and live changes across the group and frequently stored in many different systems, file structures, on hard-drives in remote locations and in filing cabinets. This renders it impossible to access locally negotiated contracts at the corporate centre.

The ProCon Contract Management Module gives the central contract management team global access to not only contract documents but more importantly the live transmittal that happen day by day at asset level.

Management Reporting

The Corporate Contract Director is challenged with understanding the global exposure to a particular contactor.

The ProCon Management Dashboard shows the consolidated position across the assets and projects. See how contractors choose to do business with you by interrogating live and historic contract data.