Overview

At the end of 2006 we completed preparing one of the oil majors for Sarbanes-Oxley compliance and this short article outlines some of the benefits enjoyed by the company. It was generally agreed that the improvements gained from the establisment of a strong Internal Control Culture were worth keeping, regardless or not of the Sarbanes-Oxley legislation. All the views expressed come from formal and informal feedback from the client's staff.

Brief

Review the Oil & Gas Production Reporting Process, assess the risks of errors, design and implement systems and controls to ensure accurate production reporting.

Solution

• Thorough Business Process Mapping.
• Risk analysis of existing process.
• Design of new processes through facilitation of production staff.
• Culture change resulting in fundamental changes to staff attitudes to understand:
  • Accountability.
  • Clarity and Precision.
  • Discipline.
  • Segregation.
• Application of Professional Project Management aimed at Stakeholder Management, Risk Management and ensuring benefits are delivered on time and within budget.

Results

Senior Management Benefits

• The identification of 300,000 barrels of oil which had been previously unreconciliable with sales.
• Improvements in reserves forecasts as a result of improved production figures.
• Improvements in the forecasting production and company financials.
• Improvements in clarity and accountability in the way the company runs.
• Dramatic reduction in rework by ensuring that information is accurate at the point of release.
• Establishment of master sources of data, the quality of which is known and validated.
• Improvements in the organisation and the recruitment of properly qualified people for essential jobs.
• Identification and resolution of important production and measurement problems.

Staff Benefits

• Involvement of key experts in the processes of establishing company performance.
• Clarity of Accountabilities within the organisation.
• Clarity of the process and the part that individuals play in it.
• Improved teamwork and problem-solving between departments.
• The establishment of routines which increase the quality of work done.