Exploration and Production: An Alvarez and Marsal Case Study on AFE Workflow Improvement
By Alvarez and Marsal
As the company rapidly increased drilling activity and related capital expenditures, management recognized the need to assess and identify opportunities to better manage and develop an efficient end-to-end Authorization for Expenditure (AFE) workflow process. A&M identified improvement opportunities and simplified end-to-end AFE workflow processes – accommodating team-specific AFE creation needs, while standardizing the approval workflow. We prepared a summary of software solutions that would meet the company’s needs based on defined requirements and a market assessment of AFE solutions employed by exploration and production companies. The A&M team also recommended a solution (WellCycle) and conducted a “proof of concept” to ensure the suggested roadmap met all business requirements. We then developed and facilitated training sessions, and provided support to successfully implement the new workflow processes.