Midstream: Process & Technology: Crude First Purchaser Process & Systems Strategy and Implementation
Company is a publically traded Master Limited Partnership formed by the merger of two midstream companies. Company owns and operates approximately 9,000 miles of gathering and transportation pipelines, 13 gas processing plants, seven fractionators, as well as barge and rail terminals, product storage facilities, brine disposal wells and an extensive crude trucking fleet. Company’s crude first purchaser and water hauling business was growing rapidly, and the existing business processes and systems were not supporting the growth in transactions or complexity. Company hired Opportune because of our first purchaser experience to define a new operational strategy for their people, processes and systems.
The historically natural gas gathering and processing company acquired the crude and water business in 2010. The new business lines were relatively unknown to the corporate team supporting the business unit. Company engaged Opportune because of Opportune’s crude marketing and revenue distribution expertise. Opportune assessed Company’s existing processes and systems and defined a strategy that built upon the existing infrastructure. The solution encompassed trucking dispatch, run tickets, inventory management, contract management, pricing, netback calculations, settlement, severance tax, revenue distribution and regulatory reporting.
In six months, Opportune implemented a crude marketing system and a DOI/revenue distribution system. Opportune conducted extensive parallel testing of historical and current business activity. The Opportune and Company teams were clearly partners, working side-by-side in daily and monthly close operations. The client’s CFO, CAO, Controller, CIO and divisional President stated they would not have been successful if it were not for the Opportune team’s dedication and willingness to do whatever it took to achieve the project’s objectives. For more information click here.