Accuracy advises in creating a model subsidiary for an oil and gas giant and saves the group millions.
Our client, the Colombian subsidiary of a large Spanish industrial group, is engaged in petroleum and gas exploration and production activities. They needed advisory support with their contracting and purchasing processes and the transport and sale of crude oil extracted in Colombia. The subsidiary was growing but only employed a handful of people to manage operations; the group was losing money because of missed opportunities and scheduling errors.
How we helped
The purpose of our work was to turn the subsidiary into a model of the way the group could perform its processes in all of its subsidiaries worldwide.
- Phase 1 of the project involved the following: reviewing the bid, contract and internal purchasing processes for the subsidiary; identifying issues and areas of improvement; and recommending changes to these processes. It also included a review of the transport and commercialisation process for crude oil. The company’s lax control of its oil commercialisation timeline was leading to millions of euros in lost revenues.
- Phase 2 involved optimising the cost allocation for the projects for which the subsidiary acted as operator. We also reviewed the cash call process and proposed an inventory optimisation plan.
In summary, our team reviewed the operations relating to bidding, contracts and purchasing as well as the process for oil commercialisation and prepared a report detailing its findings and recommendations. As a result, many of the processes were streamlined to avoid careless errors and loss of revenue. In addition, the subsidiary hired several people to improve management of the various processes at their offices in Bogota.