Enterprise platforms · Oil and gas
Joint venture accounting, cash calls and AFE management
We build custom joint venture accounting, cash calls and AFE management software for oil and gas operators and partners: authorisation for expenditure workflow with partner approval, cash calls, joint interest billing, cost recovery statements and a partner portal. It applies the terms of your joint operating agreement consistently, takes costs from your ledger and procurement systems, and you own the code.
Requirements · Capital projects and ventures
Project controls and JV reporting requirements
Requirements to adapt for a project controls, joint venture accounting, engineering information or contractor portal system: structure, cost, schedule, progress, change, partner reporting, handover and access.- 01Eight requirement areas written as testable statements.
- 02Items for AFE approval, cash calls and partner statements.
- 03Handover, document control and contractor portal checks.
- 04Seven questions to put to any vendor or development partner.
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What the system does, module by module.
- 01
Venture and partner register
Ventures, blocks, partners, working interests and operating committee membership, with effective dates and the agreement terms that apply. - 02
AFE lifecycle
Requests for authorisation of expenditure with scope, budget and supporting papers, through approval, supplements, close-out and final cost comparison. - 03
Partner voting and approval
Distribution of AFEs to partners, recorded votes and deemed-approval rules under the agreement, with timers and reminders. - 04
Cost capture and allocation
Costs imported from the ledger and procurement, coded to the venture and AFE and split to partners by interest with the rules of the agreement. - 05
Cash calls
Forecast and call-up of funds by partner and currency, tracking of receipts, late payment interest and carry or default mechanics. - 06
Joint interest billing
Monthly statements of costs by partner, account and AFE, with supporting detail and credits, in the format the partners expect. - 07
Cost recovery and profit sharing
For production sharing contracts, cost recovery pools, ring-fencing, profit oil splits and the statements submitted to the host authority. - 08
Partner portal and queries
A portal where partners see statements, AFEs and supporting documents, raise queries and approve, with a record of every response. - 09
Audit support
Tracking of partner audit rights, exceptions raised, responses and agreed adjustments, with the evidence attached.
Reference architecture.
Standards and interfaces
What we design against.
- Joint operating agreement and accounting procedure
- Model forms such as the AIPN model JOA and the COPAS accounting procedures, as adapted in your agreements.
- Production sharing contract terms
- Cost recovery limits, ring-fencing, profit oil sharing and reporting duties in each contract.
- Authority for expenditure governance
- Delegation, thresholds and supplementary approval rules under the agreement and internal policy.
- Accounting and tax rules
- Treatment of costs, currencies, withholding and recoverability under local law and accounting standards.
- Statement formats and exchange
- The statement layouts partners and authorities require, with machine-readable exports.
- Data protection and confidentiality
- Partner-level segregation of data and retention for the period the agreements require.
Data model
The core entities.
- Venture and interest
- Block or field, partners, interest percentages, operator and effective dates.
- AFE and supplement
- Scope, budget, version, approvals by partner, status and close-out figures.
- Cost record
- Source entry, account, AFE, venture, amount, currency and recoverability.
- Partner allocation
- Share of each cost by partner under the agreement rules, with rounding and adjustment.
- Cash call
- Forecast, amount by partner, due date, receipts, interest and status.
- Statement
- Period, partner, lines billed, credits, totals and delivery record.
- Query and audit finding
- Item, partner, exception, response, agreed adjustment and date.
When custom development is the right call.
Controls designed in, not added later.
Partner segregation
Each partner sees its own share and the data the agreement makes common, and nothing about other ventures.Approval enforcement
AFE approvals and thresholds follow the agreement and internal authority, with the system refusing spending beyond approval.Rule governance
Allocation rules and interests are changed only under approval with an effective date, and past periods are kept as they were.Reconciliation to the ledger
Billed totals reconcile to the ledger each period, with differences shown before statements are issued.Audit trail
All approvals, allocations, calls and adjustments record user and time.
From discovery to a system you run.
- 01
Agreement and process review
We read the joint operating agreements and accounting procedures with commercial, finance and joint venture teams and map how costs flow today. - 02
Rule and workflow design
Allocation rules, approval workflows and statement formats are specified and checked against sample periods. - 03
Build and back-test
The platform is built and used to recompute past periods for one venture, comparing results with issued statements. - 04
Parallel run
One venture is run in both processes for a period, with differences explained. - 05
Roll out and open the partner portal
More ventures follow, and partners are given portal access for statements, AFEs and queries.
Relevant work
Where to see our work.
Common questions.
- Can the software apply our joint operating agreement's rules exactly?
- Yes. Allocation, approval and interest rules are modelled as data from the agreement, checked against sample periods and approved by finance and commercial before they are used.
- Does it replace our ERP?
- No. The ERP or ledger remains the source of costs. The joint venture platform adds the venture rules, AFE workflow, partner billing and cash calls.
- How do partners interact with the system?
- Through a portal where they see statements and supporting documents, vote on AFEs, raise queries and track cash calls. Each action is recorded.
- Can it handle production sharing contracts?
- Yes. Cost recovery pools, limits, ring-fencing and profit oil sharing are modelled per contract and reported in the format the host authority requires.
- Who owns the code and the rules?
- You do. The code, the rules and the data stay yours.