AVEVA (Schneider Electric) > Case Studies > Sakhalin Energy Streamlines Contract Management with AVEVA

Sakhalin Energy Streamlines Contract Management with AVEVA

Customer Company Size

Large Corporate

Region

Asia

Product

AVEVA ProCon

Tech Stack

Database Management
ERP Systems

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Productivity Improvements
Cost Savings

Technology Category

Platform as a Service (PaaS) - Data Management Platforms

Applicable Industries

Oil & Gas

Applicable Functions

Procurement
Business Operation

Use Cases

Supply Chain Visibility

Services

System Integration
Data Science Services

About The Customer

Sakhalin Energy Investment Company Ltd. is based in the Russian Federation and operates the world’s largest oil and gas development. The company produced 5.22 million tonnes of crude oil and 10.82 million tonnes of LNG in 2015, accounting for 4% of the global LNG market and producing over 300 million barrels of oil since 2008. Sakhalin Energy is responsible for all contracting and procurement activities for the company. The company's supply chain management team sought to find a sophisticated contract management solution that would work for both operational contracting and major projects, by codifying its processes and enforcing its governance procedures.

The Challenge

Sakhalin Energy, the operator of the world’s largest integrated oil and gas development, was facing challenges with its outdated contract management system. The system, which had been in use since the company's formation, provided a database where all tenders and contracts were tracked and their status monitored. However, it did not provide the operational teams full transparency of what was happening, nor did it offer the ability to report on tender and contracting activities. The company was also in the early stages of two major expansion projects and needed a solution that could manage and mitigate potential contract variations and claims associated with these projects.

The Solution

Sakhalin Energy selected AVEVA ProCon’s contract management system solution to improve and streamline their processes. The company implemented AVEVA ProCon in 2015 to manage both Pre-Award and Post-Award processes. The initial requirements gathering was completed on site in Sakhalin by AVEVA ProCon consultants, while system build was completed remotely. AVEVA ProCon is being used across the whole of Sakhalin Energy’s contracting team to manage over 200 tenders per year and over 1,000 operational contracts across wells, production, logistics, corporate services, small projects and two major expansion projects.

Operational Impact

The solution has provided greater transparency on the status of all tendering activity to Sakhalin.
The ability to manage all contractual related communications in one place (both internal and with vendors) has been improved.
The management of approvals has been improved.

Quantitative Benefit