IN ENERGY. Essentials Guide. Common Problems. www.sapphiresystems.com

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Essentials Guide FAST FORWARD IN ENERGY Common Problems Whether your organisation is a large, multi-national oil and gas company, or a local independent producer, your business is at the mercy of a volatile market. To ensure you sustain profitability, you must control costs whilst maintaining both the agility and flexibility needed to act on key market opportunities. Do you struggle to gather real-time, valuable financial and operational insight and transparency across your business sites? Can you easily track the profitability, maintenance and operation of your assets in order to improve productivity and reduce costs? Are you finding it difficult to manage complex accounting, reporting and analysis processes due to conflicts in language, currency and local variations?

Industry Challenges Energy companies need a business model designed for speed and agility, one that can keep pace with a more unpredictable environment and address new challenges, opportunities, and partnerships more effectively than the competition. Although price volatility captures much of the attention, it is only one of the important variables energy companies must manage. With the increased focus on climate change, energy companies are also facing regulatory pressure to measure, report, and reduce green house gas emissions and eliminate their own energy waste. This is taking place while the techniques, technologies, and locations necessary to access remaining energy resources are becoming increasingly complex and more difficult to manage, and in many instances, the company s asset infrastructure is aging too. If you re a decision maker in the energy industry, you know how important it is to achieve a higher return on your capital assets, including your equipment, buildings and grounds, vehicles, and linear assets. It can also be a challenge to keep people, assets and the environment safe while: Generating management information to provide detailed data on activities Gaining critical insights about field performance Reducing the costs of acquiring, managing and maintaining assets Mastering complex global and local reporting requirements in key areas such as joint venture accounting, forecasting and planning, asset maintenance and work management Improving the up-time and efficiency of revenue generating assets Managing legal compliance and operational performance Integrating mission-critical business applications and processes Reducing risk and creating a competitive advantage Maximising return on capital employed Proactively achieving regulatory compliance In order to maximise efficiency, you require complete visibility over projects, costs, business processes and accounting. This is no easy task when energy companies are frequently required to view the world as a single market. Without the right software it can be difficult to manage local variations in language, currency, and business standards, flexibly determine procurement processes, and ensure consistency through joint venture cost allocations. Once a company has successfully implemented a back office system and put the right processes in place, accurate planning, consistent delivery and effective management is perpetually easier. This is extremely important for energy companies as it generates more time to demonstrate agility, innovation and expertise in this buoyant market and can help you drastically improve equipment utilisation. Sapphire can help take you forward, faster Sapphire s solutions help to support organisations across the energy spectrum. Our clients range from exploration focused businesses with one asset, to companies with large, diverse asset portfolios and a mix of exploration, development and production activity. Sapphire understands the energy marketplace is extensive and we can support the needs of your company worldwide. As a dedicated provider of world-leading business solutions for the global energy sector, and with over 80 active energy clients, we have been helping improve financial and operational efficiency for over twenty years. Our unique global infrastructure means that we are the only implementation and support partner able to offer 24 hour support to our clients, and we have experience of implementing projects in a number of countries including the UK, Russia, Kazakhstan, Indonesia, Singapore, Nigeria, Ghana, Trinidad, America and Canada. It s important to remember that Pan Ocean is a business that s come from spreadsheet and paperbased processes. So previously if a draft purchase order was raised it went around the cycle for approval and then was issued, but once it left each desk we had no visibility over its progress. However now we can track transactions in the system, which provides transparency and control. Tony Calderley, IT Consultant, Pan Ocean

We employ some of the industry s most highly experienced consultants, and couple our comprehensive understanding of the commercial drivers for the global energy sector with demonstrable expertise in the following fields: Upstream E&P Subsea and oilfield services Unconventional energy Mining and minerals Power generation The Sapphire Difference Sapphire Energy Solutions offers a unique, fully integrated software solution which can provide financial management, supply chain management, operational management and planning and forecasting, allowing you to simplify processes with common reporting. Our approach means that you only pay for and implement the elements that you need, allowing you to implement a stand alone financial management solution with the flexibility to add modules as your organisation develops and grows. Financial Management Powerful inventory analysis and costing features to precisely track all expenses relating to a joint venture exploration project Combined functionality of multiple ledgers into one definable chart of accounts Sophisticated and powerful reporting tailored to the energy sector Authorisation for Expenditure (AFE) tracking Asset maintenance and uptime reporting Extended analysis dimensions for multiple lines of business The system can also be configured for different types of businesses, such as Joint Venture (JV) accounting, enabling you to capture AFE codes for both actual and budget figures. Asset Management The energy industry is very asset intensive and any downtime can have a significant impact on an organisation s bottom line. The maintenance of these assets is not only important from a productivity point of view but because of the significant health and safety implications of any failure. Make quick and accurate decisions based on superior financial management planning and forecasting and realtime reporting and analysis. Our system offers you insight into critical financial and operational information so you can respond quickly to business change. You can use this solution to reduce reliance on spreadsheets, as well as the need to add new accounts to the general ledger and rewrite existing reports. Other functionality includes: Ability to manage local Generally Accepted Accounting Principles (GAAP) International Financial Reporting Standards and statutory reporting Multi-entity accounting functionality Multi-currency Strong custom analysis With industry-leading capabilities such as built-in predictive maintenance, performance monitoring and alerting, our offering helps companies increase safety and operational and environmental performance. This fully integrated solution manages the risk and complexity associated with assets, enabling a detailed view of costs and where they can be reduced. It will also ensure you get the best possible return from capital assets, including the compressors, valves, pumps, and motors that keep pipelines, oil platforms, and wells operating at peak performance. The solution delivers functionality necessary for maintaining the competitive advantage that comes from a safe, compliant, cost-effective and adaptable asset infrastructure including: Upstream E&P Subsea and Oilfield Services Unconventional Energy

User Experience Role-based Dashboards Reports Alerts Personalized Tasks Seamless User Interface Supply Chain Management Purchase to Pay Supply Chain Workflow & 3 Way Match Supplier Monitoring Full Contract Management and RFQ Integrated Materials Management Full Stores Capability Economic Order Quantity Replenishment of Critical Spares Financial Management GL, AP, AR Multi GAAP JV, PSC Accounting Assets by UOP Time Writing AFE Approval Custom Analysis Multi-Currency JIB Stmts & Cash Calls Auto Allocations Extended Financial Modules Expense Management Document Scanning Operational Management Asset Management Work Order Management Project Management Corrective Maintenance Preventative Maintenance Health & Safety Fleet Management Common Reporting (Q&A / Vision) BI and Planning Budgeting & Forecasting Operational Analytics Production Planning (3 P s) Consolidation Highly functional web-based purchase to pay functionality with full workflow, supplier monitoring and email integration Procurement functionality which can be fully integrated with materials management for complete management of inventory Management of all equipment and linear assets from one solution to improve reliability and reduce operational expenses Fully integrated work management to track all aspects related to work performed on assets Sophisticated project management for scheduling and managing large projects The ability to create preventive maintenance plans and manage ad hoc work orders and associated procurement Integrated health and safety functionality Mining and Minerals Power Generation Enterprise Resource Planning Our world-class ERP solution integrates a range of key areas including financial management, banking, fixed assets and inventory management, which can help you drastically improve equipment utilisation, dispatch and customer satisfaction. With full integration you can also manage the rest of your invoicing, inventory management and payroll functions from a single system, creating much more visibility and control. Additionally, specific modules offer further functionality for energy organisations including: Quick order fulfilment to enable increased asset utilisation and billing Job costing functionality to provide real time visibility of the profitability of any job, project or work order Rentals functionality to manage the process from one screen, including scheduling, equipment movement and billing rates providing timely and accurate invoicing Work order management, bringing all information together (service and repair, billing and payroll) along with historical records of work performed Ability to key field tickets in to one system ensuring that all information is seamlessly united with billing, costing and payroll data

Real time visibility over dispatch information enables you to tell whether your equipment is out at a specific job, in transit or sitting idle Compliance and certification management to alert you to upcoming staff certification and compliance deadlines Strong time management capability to capture all time spent on past and current jobs along with any incidents that occurred, providing full visibility for reporting and cost tracking Pre-defined accounting ledgers to capture AFE codes for both actual and budget figures and list an unlimited amount of wells, employees, time writers and cost types Multiple views of data retrievable from a single source for local statutory reporting, management reporting, reporting by AFE, and tax reporting Integration Sapphire s plug and play interface module is tried and tested in over 30 sites worldwide and offers tight integration between your operational and financial functions. This allows for data synchronisation between solutions and key business benefits include: Massive reduction in data processing time Accurate data processing between applications Entry of transactional data and standing reference data once only Real time view of financials, inventory, commitments, accruals and actuals against budget, which can be drilled down by department/cost centre/plant item etc Business Intelligence Sapphire also provides energy operations with: Business intelligence solutions deliver timely and up-todate information in a format that s immediately useable. Meet targets and objectives with advanced reporting and accurate forecasting, test multiple business scenarios quickly and drill down to view information at any level of detail. Business intelligence has many benefits for energy organisations including: Delivering advanced reporting and sophisticated business analysis to improve collaboration and optimise key processes Multi-dimensional data to forecast what if scenarios, improving your confidence in business decisions A platform for modelling any business driver to allow for contingency planning Simple drag and drop data elements to zoom in on details without requiring IT support e-procurement solutions to streamline the purchasing cycle and identify cost-savings Payroll Electronic payment solutions Document management and storage solutions Cloud Cloud services enable today s businesses to be more nimble, efficient and cost effective than ever before that s why we offer Sapphire Anywhere for selected business solutions.

I found the Sapphire team assigned to the project had strong competency skills in finance and integration, with significant experience in previous system implementations. They have vertical industry knowledge and strong experience in the oil and gas sector too. All this meant I was fully confident in the team. Dharmoro Budiawan, Information Services Manager, Premier Oil About Sapphire Contact Email - info@sapphiresystems.com Support 24/5 support as standard Global implementation & multi-lingual capabilities Software multi-system integration Web - Our Offices United Kingdom - London - Manchester - Edinburgh Influence Infor & SAP Partner Council Member Services consultancy & training Hosting safe, secure mobile solution United States - New York - Los Angeles - Irvine - Houston - Chicago Australia - Sydney