30 october 2008
GMCS builds a fully functional finance management system for Naryanmarneftegas
GMCS has successfully completed a finance management system project for Naryanmarneftegas, a joint venture between LUKOIL and ConocoPhillips. 

The finance management project has been built around a customized GMCS Oil&Gas business solution developed on Microsoft Dynamics AX application built for managing oil and gas industry companies.

The previous corporate finance management system became obsolete as Naryanmarneftegas demand in capturing management reporting data was growing. In early 2007, the Naryanmarneftegas management decided to upgrade the existing corporate management system. Subsequently, the company called for tender and sel ected a Microsoft Dynamics AX solution as a basis for creating a new information system. GMCS was awarded a contract for building a new system.

Experience gained by GMCS in automating oil and gas company management processes as well as GMCS own developments (GMCS Oil&Gas applications) allowed the company to build a fully functional solution in the sphere of corporate finance management customized to the client’s specific environment.

The project was rolled out by the GMCS team in close cooperation with the client’s technical team. As part of the implementation project, GMCS consultants computerized financial, taxation,  management and GAAP accounting processes, contract coordination, registration and support procedures, cash flow budget management. Besides, some challenging tasks specific to the oil and gas industry, such as keeping separate accounts for input VAT for export operations, tubing records, ordering costs accounting for materials purchase and sale of materials to contractors.

As result of this research work, Naryanmarneftegas got a new management information system for real-time finance accounting, cash budgeting and financial performance analysis of company's operations.

Today, the computerized corporate finance management system of Naryanmarneftegas has been put in operation. The project particularly stands out for a very short implementation time of its IT- solutions – 8 months has past fr om the system start until its implementation.

GMSC and Naryanmarneftegas continue to cooperate at this moment. Automation of remote warehouse operations is nearing the completion phase, implementation of an advanced logistical system is in progress for building a comprehensive integrated ERP system based on a single IT solution.

"The implemented solution as far as the functionality is concerned does succumb the information systems offered by other vendors who are traditionally present in the oil and gas industry," Alexei Zaitsev, GMCS Microsoft Solutions division manager commented.

About Naryanmarneftegas

Naryanmarneftegas is a joint venture between LUKOIL and ConocoPhillipswhich was established for the purpose ofhydrocarbons development in Russia. The company was established in 2005.

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