Commitment, not just spend
Approved orders and contracts reduce available AFE budget immediately, so overspend is prevented rather than reported.
ERP for Oil and Gas Businesses
Why an ERP is best practice for oil and gas businesses
A practical look at what an ERP does for an oil and gas operator or services business, where the value sits, and how to choose a platform that controls project spend and partner reporting.
Overview
What an ERP does for an oil and gas business
Oil and gas work is project shaped, contractor heavy and frequently shared with partners. Spend commitments are large and made long before the invoice arrives.
An ERP (enterprise resource planning system) links authorisations for expenditure, procurement, contractor cost, equipment and finance so committed cost is visible and partner billing is defensible.
Operational and HSE systems keep running the site. The ERP governs commitment, cost and reporting.
For most oil and gas businesses, an ERP is where the following live:
Benefits
Why your oil and gas business needs an ERP
The value is committed cost control. Knowing your position against every AFE before the invoices land.
Contractor cost controlled
Rates, timesheets and service entry checked against contract terms before invoices are approved for payment.
Partner billing defensible
Cost coded by AFE and working interest produces joint venture statements from records rather than from a spreadsheet.
Cost per well and per project
Every cost carries its project, so historical actuals inform the next AFE realistically.
Faster close across entities
Automated FX handling and intercompany posting shorten the group close.
Audit ready by default
Full approval and audit history supports partner audits and regulatory scrutiny without a reconstruction exercise.
ERP stats
Why your oil and gas business needs an ERP
Data taken from a survey we commissioned in December 2024. Click here to view
0%
of businesses are utilising an ERP
0 in 0
businesses are dissatisfied with their current ERP
0%
of businesses say using an ERP has contributed to achieving business outcomes
In practice
What this looks like in an oil and gas business
Six everyday situations where one connected system changes the outcome.
01
An AFE is approved
Budget is created and every subsequent commitment is checked against it as orders are placed.
Example use cases
Streamlining oil and gas operations with an integrated ERP
An enterprise resource planning system provides oil and gas businesses with a unified platform to manage projects, assets, procurement, and finances, ensuring operational efficiency and regulatory compliance.
An independent oil producer
- The challenge
- Managing capital expenditure projects across multiple exploration sites involved disjointed spreadsheets, making it difficult to track actual costs against approved budgets and forecast completion dates.
- The approach
- An ERP was implemented to provide integrated project accounting, allowing for real-time tracking of all project-related costs, from initial engineering to commissioning.
- The outcome
- The producer gained comprehensive control over project budgets, improved cost predictability, and enhanced visibility into the financial performance of each development.
An offshore services contractor
- The challenge
- Tracking expensive equipment and consumables across numerous offshore platforms and onshore depots was inefficient, leading to stock discrepancies and delays in critical operations.
- The approach
- The contractor adopted an ERP system with robust inventory management and asset tracking capabilities, providing real-time visibility of all materials and equipment.
- The outcome
- Inventory accuracy improved significantly, reducing operational downtime caused by material shortages and optimising procurement processes for spare parts and supplies.
A mid-sized exploration company
- The challenge
- Reporting financial data and operational metrics to joint venture partners was a manual and time-consuming process, often requiring significant reconciliation efforts.
- The approach
- An ERP solution was deployed to automate the aggregation of relevant financial and operational data, generating partner reports directly from the consolidated system.
- The outcome
- The company streamlined its partner reporting, ensuring timely and accurate information sharing, fostering stronger relationships with collaborators, and reducing administrative overhead.
Illustrative, anonymised examples based on typical scenarios in this sector.
Choosing an ERP
What to look for when comparing ERP platforms
Energy finance is project and partner driven. These are the questions worth asking before you shortlist.
Does it cover the whole operation?
Finance, purchasing, stock, projects and reporting should sit in one system. Anything left in a spreadsheet quickly becomes the version everybody argues about at month end.
Does it fit how you actually work?
A system designed for a different sector rarely suits oil, gas and energy businesses. The platform should reflect your real processes, approvals and cost structures rather than forcing a rewrite of how you operate.
Can you close and report faster?
Consolidation, reconciliation and management reporting should be routine rather than a fortnight of manual work. Ask to see a month end demonstrated, not described.
Does it stand up to audit?
Role-based permissions, approval workflows and a complete audit trail should be built in, so compliance is a by-product of daily work rather than a separate exercise.
How long until it is live?
Cloud platforms with standard processes go live in weeks rather than years. A long implementation is usually a sign the system is being bent into shape.
Will it grow with you?
New sites, entities, currencies or product lines shouldn't need a replacement system. Check licensing and functionality for where you expect to be in five years.
Our recommendation
Introducing Business Central - the perfect ERP for oil and gas businesses
Once you know what an ERP should do, the question becomes which platform fits how your teams already work. Microsoft Dynamics 365 Business Central brings finance, procurement, projects, stock and consolidation into one cloud system connected to the Microsoft tools you already use.
For oil and gas that means project budgets with commitment tracking, purchasing with approval workflow and contract matching, dimension reporting by asset, well and AFE, multi-currency handling, and Power BI dashboards for cost control.
It connects to operational, maintenance and timesheet systems through standard APIs, so field activity becomes financial data automatically.
Why Business Central
The features that make Business Central the right fit
It isn't just an accounting package. These are the capabilities teams tell us make the biggest difference day to day.
Finance and reporting in one place
Ledgers, budgets, cash flow and management reporting run from the same data, with Power BI dashboards leadership can open themselves rather than waiting for a pack.
Copilot built in
AI drafts descriptions, reconciles bank entries, chases anomalies and answers questions about your data, taking a chunk of routine admin off the finance team.
Native Microsoft 365 connection
Approvals, quotes and reports work inside Outlook, Teams and Excel, so people use the tools they already know instead of learning another interface.
Automation without developers
Approvals, alerts and handovers can be automated with Power Automate using low-code tools your own team can maintain.
Security and audit trails
Role-based access, approval limits and full traceability protect the financial and operational data energy businesses are accountable for.
Modular and scalable
Start with finance and operations, then add supply chain, projects, service or Dynamics 365 CRM as you grow - without another migration.
New to ERP outside oil and gas businesses? Start with our guide to what an ERP system is and how it works, then read how to choose an ERP system for the requirements, shortlisting and cost questions worth settling before you talk to any vendor.
FAQ
Frequently asked questions
No. Production, maintenance and HSE systems stay where they are. The ERP handles procurement, project cost, partner billing and reporting.
Yes. AFEs are managed as projects with budget, commitments and actuals, so the committed position is visible throughout.
Yes. Working interest can be applied to coded cost so partner statements are produced from the ledger with a full audit trail.
Transactions are held in their own currency with automatic revaluation and translation for group reporting.
Yes. Per user per month licensing suits service companies that need strong project costing and contractor control.
An ERP system provides integrated tools for project planning, budgeting, cost control, and resource allocation, linking these directly to financial transactions. It allows businesses to monitor project progress, track expenditure against milestones, and manage complex work breakdown structures.
An ERP enhances supply chain efficiency by integrating procurement, inventory, and logistics, enabling better demand forecasting and supplier management. This leads to optimised stock levels, reduced purchasing costs, and improved delivery times for critical equipment and materials.
Yes, an ERP system provides robust audit trails, consistent data, and automated reporting capabilities that help meet stringent industry regulations and environmental standards. It supports compliance by accurately tracking production, sales, and environmental metrics.
Enquiry form
Not sure which ERP is right for your oil and gas business?
Tell us how AFEs, contractor spend and partner reporting work today and we'll talk through what an ERP would change, which capabilities matter most and where to start. No obligation, just a straight conversation.