License(s) are awarded to a company(s) which form a joint venture with one or more partners. Within the joint venture there is a need to share information between the operator and the partners. If required by local legislation or agreed upon with the authorities, it is possible to set up authorities as “observers” for a joint venture.
The solution is an Enterprise Content Management (ECM) solution which supports creation, storing, transfer and organization of documents and other content. There are huge amounts of documents created in a license, and without proper document management system efficient maintenance and sharing becomes a challenge.
Documents are stored in many different places like file cabinets, PC hard drives, network drives and web servers and distributed unsafe by e-mail, mail etc.
The same document can be stored in different places which mean that there is much unnecessary information, and most of the information cannot be accessed by different persons who potentially are causing lack of information and version control. The purpose of document management is to organize information documents throughout the whole project, categorize it logically, define which information is available to different users, minimize the overlap of information and maximize the efficiency of document sharing to every part of the organization. The essential technologies in document management are databases and communication tools.
How L2S improves collaboration
L2S is a formal archive and collaboration tool for administrative documents within a joint venture. The operator is responsible to make sure all relevant information is added to the solution.
The partners and authorities can trust that all license related information is available and they do not need to keep an internal archive themselves. The solution will contribute to a more efficient flow of information and to ease cooperation between the parties involved.
L2S could also offer safe electronic communication between authorities and operators/licensees. It is designed to receive e.g. reports like quarterly gas, oil and NGL sales from relevant companies as well as all other formal correspondence between companies and authorities.
L2S brings together Joint Venture parties with disparate processes, data from various sources and applications into a single collaboration platform.
The key business value of the initiative is that companies recognize that the collaboration does not jeopardize competition, but actually streamlines work processes, making them more effective and reducing information risks and costs. "All players involved are confident that they are all gaining from collaboration," said Ove Ryland, managing director, EPIM. "They can count on L2S to fulfill regulation requirements in a very effective and predictable way." L2S facilitates the information sharing inside each Joint Venture and simplifies the process for companies deciding to join or leave a joint venture.
A key success factor of the initiative is the pragmatic approach taken for its implementation. Experts from the key operators worked together to define standard procedures or data formatting and reporting, looking for a best practice solution that would satisfy the requirements of both companies and regulators. The same approach is followed for any additional new functionality that is implemented. By doing so, any adopter can count on a "best practice" solution built on the industry's concrete experiences.
In addition, companies might have different roles in various Joint Venture's, being an operator in one and a partner in another, for instance. By adopting the platform they get consistency across licenses.
To summarize, the key advantages of L2S are:
- Reliable administration and archiving of Joint Venture documentation.
- Reliable collaboration on events, compliance, and legal document sharing and data management.
- Joint Ventrue life-cycle content management of different document types, traceable and time stamped.
- Easy alignment to changes in the Joint Venture life cycle.
- Compliance with local legislation, including the flexibility to incorporate future changes in legislation.
- A private cloud-based solution that is easily extendable and scalable.
- A proven and accepted industry concept.
- Predictable cost effective IT solution as investments are shared amongst Oil and Gas companies.