Oil & Gas

Joint Venture Review

AMS-PAR represents companies involved in both domestic and international joint ventures. Whether your venture is in the deep gulf, onshore, or in producing basins around the world, the AMS-PAR team has the experience to evaluate whether billings and production allocations made to the joint venture partners comply with your agreements.

Our reports not only detail each discrepancy to facilitate resolution, but also include a summary of the engagement findings and other areas of concern. The report is written in a manner which enables a quick response to operational and accounting concerns and facilitates the recovery of overpayments.

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Vendor/Supplier Review

With the significant increases in production costs, it is increasingly important for companies to carefully monitor and control their contractual relationships. Most midstream and upstream companies have seen rapid growth in expenditures, but few are adding staff to track and control these increasing costs. As the spending grows, so does the need to have contracts analyzed for compliance with their terms and conditions. In today’s multi-million dollar contract environment, even small interpretational errors by a vendor can create large overpayments. Agreements that in the past were too small to warrant review are now substantial enough to receive attention.

For over 25 years, AMS-PAR has helped oil and gas companies monitor their contract costs. A comprehensive AMS-PAR vendor review program will determine the current level of contract compliance of key suppliers without adding additional burden to your staff. We will examine the agreements that are the basis for the commercial relationship, verify that the resulting invoice activity complies with the terms of the agreements, and confirm that payments made under the agreements are accurate. AMS-PAR will also assess compliance with your business ethics policy.

At the close of the engagement, we will provide a detailed report of the review. This report will include the findings of our team regarding overpayments and contractual misinterpretations that have acted to the detriment of our client. It will also incorporate specific recommendations to strengthen the contract oversight process with the objective of preventing recurrence of these errors in the future.

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Project Construction Review

In today’s oil and gas environment where hundreds of millions are spent constructing platforms and midstream assets, it is vital for your company to have processes in place that provide the assurance that your construction contractors are in compliance with their contractual obligations. When even small misinterpretations can mean large overbillings, these contractor compliance reviews are a necessary component of any risk management and post-procurement process.

Our post-construction review offers the opportunity to detect control weaknesses, close gaps on future contracts, and recover lost profits. Typically, recoveries are made in areas like improper billing for contractor time, inappropriate mark-up of costs, and rebilling for items that are contractually covered by overhead. AMS-PAR’s professional staff will carefully analyze payment processes, identify payment errors, and provide recommendations for contracting and payment process improvements.

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Royalty/Revenue Review

The objective of our royalty/revenue engagements is to evaluate whether distributions made to you or your company were properly calculated. The complexities associated with the valuation and allocation of production revenues require an analysis of information that is not always available to those receiving payment. Often payments simply reflect minimal information and summarized data. Many times, requests for additional information or support go unanswered.

AMS-PAR’s staff have the requisite skills to analyze distributions to see that they comply with lease terms or other agreements. We validate and compare information provided to the royalty holder to data reported to governing agencies, ensure arm’s length valuation of the sale, and analyze deductions for marketing, transportation, and processing to provide assurance that the net remittance is accurate.

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Accounts Payable Review

Accounts Payable departments operate in a complex environment with both intra-corporate and external factors impacting their performance. AMS-PAR recognizes that each client has distinct needs and varying capabilities to support a post-payment transaction analysis. In spite of these differences, one overriding factor is constant: today’s business demands that all assets perform at their maximum efficiency, and the A/P Department is no exception.

AMS-PAR can provide you with a comprehensive examination of the A/P function. This detailed look will recover revenues lost to vendor overpayments, mispayments, and contractual misinterpretations. AMS-PAR’s experienced team will also analyze the root causes of these inaccurate payments and give substantive recommendations regarding process and procedural improvements, which can prevent the recurrence of these errors. AMS-PAR will help our clients ensure their payable processes are functioning at peak efficiency.

We will provide written and electronic reporting data to support our analysis. Your report will detail each discrepancy, its root cause, the vendor’s recognition of overpayment, and recommended actions for preventing future discrepancies.

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