Industry: Oil and Gas Sector
Solution: Enterprise Resource Planning
Tharwa is the first Egyptian joint stock Petroleum Company 100% nationally owned to execute an upstream operation with two main goals E&P and Petroleum Services. Tharwa initiated its activities in exploration in five concessions in the Mediterranean Sea and Western Desert of Egypt.
When it comes to oil and gas industry we need to determine if it is upstream, midstream or downstream. Tharwa Petroleum is oil and Gas Company specified for the sector of Exploration and production. This industry is very risky in spite the mass of profitability that is carried for the business. To share this risk, it can be through joint venture accounting (JVA). Although SAP has, Joint venture accounting module for that kind of industry, Tharwa would not be able to proceed with JVA for budgetary reasons. Accordingly, Intercom has suggested using SAP FICO. The real challenge was gaining this industry knowledge of aspects to be able to handle and achieve the required outputs. Our Intercom SAP team was able to restructure and remodel the standard SAP FICO to incorporate SAP Joint Venture Accounting that indeed achieved up to 80% of SAP JVA outputs.
The Solution and its added value:
Through getting more in-depth in SAP Joint venture accounting structure, we were able to make a high-resolution mapping to SAP FICO without customization. This mapping ensures that 80% of SAP JVA outputs is generated via standard SAP FICO cycle. As a direct result, the customer approved that our solution covered the core of the industry and became able to generate financial statements on the level of each concession. In addition, Tharwa was also enabled to handle Exploration and Development CAPEX and its amortization over the entire production life.
Tharwa has now gained a better understanding and clearer insights about how its business is performing, with an improved financial position of the company in real time. Furthermore, FICO module helps employees to manage and control data involved in any financial and business transactions in a centralized system that catered to improved reporting capabilities for diverse legal requirements and business transactions.