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 although the mass of profitability that is carried for the business. To share this risk it should be addressed through joint venture accounting. Although SAP has Joint venture accounting module for that kind of industry Tharwa would not be able to proceed towards JVA for budgetary reasons. So, they went to SAP FICO. Here is the real challenge through the knowledge of industry aspects that are needed to be addressed to achieve the required outputs. Our SAP team was able to restructure and remodeling of standard SAP FICO to act as SAP Joint Venture Accounting with achieving about 80% of SAP JVA outputs.
Through getting more in-depth in SAP Joint venture accounting structure we were able to make a high-resolution mapping to SAP FICO with no need to customization. This mapping results that 80% of SAP JVA outputs are generated via standard SAP FICO cycle. The customer approved that our solution covered the core of the industry as the customer became able to generate financial statements on the level of each concession. Besides handling of Exploration and Development CAPEX and its amortization over the 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 joined system as its functions are very well for reporting requirements and in centralizing data for diverse legal requirements and business transactions.
Industry: Oil and Gas Sector
Solution: Enterprise Resource Planning