Since going live with its SAP® Business All-in-One solution in May 2010, Laricina Energy has more than tripled its staff while significantly improving the efficiency of its financial and project cost control operations.
Laricina Energy is a privately held company focused on creating value by developing Canada’s oil sands using innovative in situ technologies. According to the company web site, it has a diverse portfolio of oil sands assets at varied stages of development, and experienced people with the requisite technical expertise. Laricina has identified five core areas with commercial production potential in excess of 500,000 gross barrels of bitumen per day from a large concentrated resource base with approximately 4.6 billion barrels net recoverable bitumen.
As part of expanding its exploration and development projects and preparing for commercial oil production and future growth – Laricina decided to implement an integrated business management / ERP solution. Laricina selected SAP® Business All-in-One as the solution technology and Illumiti as its implementation partner.
Illumiti implemented the solution from January 2010, with the first phase going live in May 2010 – on time and within the planned budget. Phase 1 included financial and management accounting, materials management, inventory management and procurement; with plant maintenance added in Phase 2. The implementation included a particularly strong focus on Laricina’s requirements for AFE (Application For Expenditure) project cost control and its seamless integration with the rest of its financial management processes, with real-time information management. This has enabled Laricina to avoid the typical practice within its industry – of using best-of-breed software for managing AFEs. Having a single integrated system significantly improves efficiency and reduces IT costs.
Stuart Gibson, Laricina’s Manager, Operational Accounting, said: “Illumiti delivered outstanding, integrated AFE (project tracking) and financial management functionality that helps us control costs, produce accurate reports and manage operational information in real-time. The system was implemented by Illumiti on time and within the allocated budget, enabling Laricina Energy to support its growth with a minimal increase in admin staff.”
Gibson also mentioned that the solution and service provided exceed industry norms and expectations in the level of integration between Laricina’s project cost control (AFE) processes and overall financial management processes; the exceptionally high-quality implementation team in the Financial Information and AFE areas; and the level of availability and responsiveness demonstrated by the implementation team.
As Laricina begins commercial oil production and continues its growth, the solution is expected to yield additional benefits to revenue, profitability and customer service.