Data Gumbo, the trusted industrial blockchain network, said Sept. 9 that it has enabled real-time lease operating expenses (LOE) for oil and gas operators.
By using validated field operating data to trigger automated payments based on pre-agreed terms, real-time LOE enables operators to access accurate, real-time information to continuously access financial visibility, an industry first.
Based on the power of GumboNet, the company’s industrial blockchain network, real-time LOE opens the door for operators to match contractual terms without human interface, instead of relying on field estimates to book accruals while expenses are stuck in paper tickets or invoice mode. Real-time LOE brings unparalleled transactional transparency and an immediacy that provides the ability to comprehensively digest variable well costs, as often as daily.
“Real-time LOE is revolutionary. Operators are able to combine all of the disparate threads that go into production in one centralized location to see expenses as they happen,” Andrew Bruce, CEO of Data Gumbo, said. “There is tremendous value in knowing to the penny exactly what actual expenditures are instead of finding out 90 days later. Data Gumbo empowers operators to allocate resources and manage wells based on accurate, real-time field readings to know where they stand instead of trying to drive their business in the rearview mirror.”
The current methods for managing LOEs for commodity production, chemical consumption, water haulage and disposal, fuel, power, labor, rental equipment and other well service expenses are time and resource-intensive utilizing paper trails and manual tickets that average 60 to 90 days to work through field approvals and accounting systems processes. Prone to delays, disputes and complicated reconciliations, operators lack visibility to tie spend to production and profitability.
LOE reporting has long been reliant on estimates of events and services as well, instead of verifiable accurate, real-time data. GumboNet executes smart contracts based on existing operational field data sources, harvesting exact information and measurements to supply continuous visibility into actual spend. By enabling a reduction in friction between counterparties, eliminating inefficiencies and automating transactional events, GumboNet enhances financial statements to deliver costs as they unfold. This helps operators identify waste and areas of spend that can be reduced as action occurs, not after the fact.
“Right now, operators are in a position to adapt digital perspectives to speed payment processes, eradicate paper invoices and tickets, and achieve a desirable competitive differentiator: real-time LOE visibility,” Alan Carnrite, CEO of Carnrite Group, said. “Data Gumbo sets up operators to achieve a huge economic payoff of improved cash flow and terms, and attract better investors.”
Wood has secured a new $42 million contract from international energy company Equinor on behalf of operator Gassco to provide EPCI services at the Kollsnes gas processing plant in Norway, the company said on Sept. 17.
Danos has been awarded a contract with Shell Exploration and Production Co. on June 25, a subsidiary of Royal Dutch Shell Plc, to provide a production workforce across Shell production assets in the Gulf of Mexico, including Appomattox, Auger, Enchilada, Salsa, Mars, Ursa, Olympus, Perdido and Stones.
Petrofac has been appointed well operator by Tullow Oil for the next phase of its Thames decommissioning project on April 2, following the award of a contract worth around $16 million.