RIMDrill Operations Billing

The increasing complexity of drilling operations and the fast changing nature of the contractual relationships between the drilling contracting community and their well operating customers has placed an additional burden on personnel responsible for tracking rig charge rate data for billing purposes. Related problem areas include considerable inefficiencies in the handling of charge rate data as it moves from the rig to the billing department. Also traditional methods of tracking billing information either lack, or inefficiently use, the inherent historical value of the data to help the marketing and sales teams better understand the financial impact of operational and rig downtime activities for use in areas such as setting rig rental rates and the preparation of rig bidding packages.

To address this issue Infostat has developed the RIMDrill Operations Billing (OB) Module. RIMDrill OB is a plug-in module for RIMDrill designed to streamline the rig billing process while also providing significant value to the data by storing it in a database for use in the analysis of historical billing trends. The application has the flexibility to accommodate an infinite variety of contractual charge rates while linking these to the rig operational reporting and IADC activity coding system. Anomalous situations like disputed time and “off contract” activities can be handled. The integrated nature of the application with the existing rig operational reporting systems results in improved efficiency and accuracy for rig personnel and those working in the billing department.

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How It Works

Once the contract terms and associated Rig Charge Rates for a new customer have been finalized the RIMDrill administrator, with administrative rights to the application, enters the new Charge Rates and links these to the operational activity and IADC codes already used by the application. These are then locked for the duration of the contract and uploaded to the rig RIMDrill system. The additional data entry burden for rig users is minimized since all they need to do is select the relevant (IADC DDR based) operational rig activity and the system then associates this with the correct charge rate for that activity. Since IADC based operational activities are already agreed to by the customer’s representative when they sign the IADC report there is minimal opportunity for disagreement of the charge rate.

The application has complex logic to deal with situations such as tiered rates for rig repairs where the software will automatically allocate hours to the appropriate rate depending on the contract terms – for example the first 18 hours per month of repair time to be charged at 90% of full day rate, while repair hours after that charged at 0% of day rate. Charge rate data is automatically transferred to the office RIMDrill system along with the other RIMDrill data and can then be used by the billing department to prepare customer invoices. The process can be further streamlined by using the RIMDrill Enterprise Sync module to up load charge rate data to the in-house accounting package.

Various reports are available for both rig based and office users. At the rig monthly reports summarize billing activity for each day and can be signed by key supervisory personnel of both companies. In the office flexible report generation tools can be used by the billing department in invoice preparation. Importantly Charge Rate data can be viewed over selected date ranges to assist with trend analysis and help reduce risk in bid preparation.

Key Features

  • Tightly integrated with RIMDrill to minimize the requirement for user training
  • Streamlined, controlled and more accurate rig data entry process
  • Full flexibility in assigning contract charge rates to rig operational/IADC report activities
  • Security controls to protect charge rate configurations
  • Handles tiered charge rates for activities such as rig repairs
  • Historical data can help improve revenue forecasting
  • Accomodates special event conditions such as force majeure, disputed time or re-drill when the nominal operating condition rates do not apply
  • Flexibility to handle non-standard situations such as Bonus Payments or Well Progress Milestones
  • Comments can be added to entries to provide explanation
  • Reports can be run by well, rig, month or selected date range
  • Reports can be signed by up to four supervisory personnel