Equinor to automate commercial agreements with Data Gumbo smart contracts
Data Gumbo has implemented its smart contract platform to automatically calculate and execute payments for Integrated drilling and well services (IDWS) dayrates for the Equinor-operated Johan Sverdrup and Troll assets. Data Gumbo’s smart contract network, GumboNet, enables the company to automate payments under its existing natural language contract using Industrial Internet of Things (IIoT) data from Equinor and third party logistics systems.
“We are pleased to move from testing to implementation of smart contracts,” said Erik G. Kirkemo, SVP of Drilling and Well at Equinor. “Smart contracts enable efficiency and automation gains both internally and for our service providers. It has the potential to take significant workload off the desk of many people at the same time as we remain compliant to our responsibilities. It allows all participants involved to continue to focus on drilling safe and sustainable wells while taking advantage of the benefit of automation in invoicing processes.”
Equinor will automate the day rate portions of the broader contract for two assets worked by one platform and four rigs. Equinor and its supplier share a variety of data including purchase orders, daily reports, logging,and control system telemetry with GumboNet. The smart contract then applies agreed business logic to this data and creates charges and invoices, which Equinor and their supplier review. Once approved, GumboNet pushes the charges to SAP via a secure API to complete the payment cycle.
“Equinor is leading the world in industrial business-to-business smart contracts,” said William Fox, CEO of Data Gumbo. “Smart contracts are providing unprecedented automation, transparency, and efficiency in the energy industry. The more work we do with operators and their supply chains, the more value we find for all parties that participate.”
Equinor plans to expand the automation of their IDWS agreements to cover more than 80% of its total contract coverage by Q4 2022. Additional smart contracts in development and testing include lump sum deliveries, meter rates, volume rates, incentives and personnel charges.
