Equinor Adopts Smart Grid Service for Borehole Payments in Norway
HOUSTON – Equinor engaged Data Gumbo to provide the GumboNet “smart contract network” service.
The goal is to ensure secure transactions with Equinor’s Drilling and Well Service Providers (IDWS), starting with the Norwegian Continental Shelf. The Master Agreement also provides the basis for enterprise-wide application for all relevant contract categories.
Andrew Bruce, Founder and CEO of Data Gumbo, said, “Smart contracts are playing a critical role in advancing the energy industry. Our work with Equinor clearly demonstrates the benefits that supermajors and their supply chain customers, partners and suppliers derive from automating business transactions.
The arrangement is designed to help Equinor achieve cost savings, efficiencies and improved transparency, enabling the company to support complex contracts and invoices while reducing processing time from weeks to a few. days.
GumboNet manages 150 different billing triggers, 17 unique payment methods, and data from Equinor’s drillships, rigs, offshore service vessels, aviation vendors, and third-party data handlers and service providers .
The smart contracts were reportedly able to create 99.7% accurate invoices without human intervention in initial trials with historical data from Equinor.
To automate offshore contract execution, Equinor and its service partners provide data from their digital systems and Industrial Internet of Things sensors to the GumboNet private network.
These contracts then combine the data with business rules and pricing to provide what Data Gumbo describes as “a contract to create a verifiable, immutable, and shared record of truth enabling billing and payment automation.”
This approach, the company says, should eliminate 95% of late payments, invoicing errors, disputes and complicated reconciliations, reducing the costs and resources needed to administer contracts and provide improvements in interest billing. common.
Equinor can now extend service to its operated assets in Brazil, said Erik Kirkemo, senior vice president drilling and wells at Equinor.