Lekoil has implemented Infor SunSystems combined with Infor CloudSuite EAM (Enterprise Asset Management) as it targets growth. Lekoil selected Infor partner Progressive TSL to implement the solution. Progressive TSL has a deep experience of implementing similar solutions, both in the Oil and Gas industries, across West Africa. At Seplat, Progressive implemented Infor CMMS (Computerised Maintenance Management Module) adding to the existing footprint of Infor SunSystems and Infor EAM. It also worked with Metsco, a consulting firm, to implement Infor SunSystems and Infor EAM at Oriental Energy. Both customers are based in Nigeria.
Progressive therefore has a good track record in the industry. They were also able to offer local expertise on the ground and face to face support for the project. This was critical for Lekoil as it wanted to implement the initial solution in a three month period. The initial phase of the project occurred between September and November 2019. This saw the successful implementation of Infor SunSystems for Financials and Infor EAM for Supply Chain Management (SCM).
Chris Walcot, CEO at Progressive TSL commented: “It’s great to see Lekoil going live with finance and procurement so quickly. This is a great foundation for the company and its ambitious plans for the future. We look forward to the next phase of the rollout.”
In future phases, Progressive will implement Materials Management System (MMS) followed by Infor Computerised Maintenance Management System (CMMS). This will allow Lekoil to utilise each component as required. It currently has four sites in Nigeria:
- Otakikpo marginal field (in OML11),
- Ogo field in OPL310,
- OPL 325 licence situated 50km south of OPL 310,
- and the recently acquired interest in OPL 276.
Lekan Akinyanmi, Lekoil CEO commented: “Progressive TSL has delivered the implementation of the finance and procurement system for Lekoil in the promised timeframe. Progressive TSL is fully committed to Lekoil, with its team being at our offices throughout every stage of the project. Due to their wide experience in implementing similar solutions in West Africa, we felt we were in safe hands. We are impressed with the outcome and are confident the scalability of the finance and asset management systems will support Lekoil as it continues to grow.”
Lekoil were quick to realise the benefits of the new solution. From the IT standpoint the migration to a secure cloud based infrastructure means the company no longer needs to invest on server hardware on site. Similarly, it will not need to increase the size of its IT team as the company grows. It can also quickly deploy solutions to new sites as they come on board.
For the Finance team there are several significant benefits:
- A faster month and year-end close.
- Reduction and in some cases removal of manual data processing.
- An Integrated procurement system that automates much of the receipting and payments process.
For the business this has enabled it to:
- Have a single repository of its data with the Infor Data Lake.
- It is therefore now able to create tailored management reports by asset.
- Improved planning. The ability to deliver proactive planning that adjusts in a timely way. This will be enhanced as the EAM and MMS works together to improve stock control.
Enterprise Times: What does this mean
This is a good win for Infor in what is becoming an increasing competitive market. Recent successes by IFS in the Oil & Gas sector has given that company a momentum of announcements that Infor will be glad to have broken up. Of critical importance to this deal, was the existence and expertise of its partner Progressive. Frederic Russo, Infor vice president EAM international noted: “Our relationship with Progressive TSL really is a testament to our partnership strategy, which is designed to deliver micro-vertical expertise with the ability to scale. In an asset intensive sector such as oil and gas, best-in-class asset management capabilities such as those available with Infor EAM not only optimise operational performance through tighter management of the asset lifecycle, but enhance production and profitability, helping companies expand market share.”
What also impresses in this announcement is the speed at which Progressive deployed the solution at Lekoil. If it can replicate that for other companies it could see Infor gain a significant share of the Nigerian Oil & Gas market.
For Lekoil this is a welcome reprieve, following the suspension and reinstatement of its shares on the AIM market. It was recently defrauded after it believed it had secured a loan of $184 million from the Qatari Investment Authority (QIA). QIA itself contacted Lekoil to advise them that it was not involved. This appears to have been a sophisticated operation and will probably cost Lekoil $600,000 in fees which it paid upfront to facilitate the loan.
SunSystems should provide an improved level of governance and may help reduce the risk of future fraud. Though it probably would not have halted the above incident.