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Comprehensive implementation of software solutions for an oil service company in Iraq

Customer
Kurdistan Pipeline Company
Project manager on the customer side
Vladimir Shinyaev
IT Advisory
IT Provider
NFP Finance Solutions (branch of First BIT)
Year of project completion
2023
Project timeline
September, 2020 - October, 2023
Project scope
520 automated workstations
Goals
  • Implementation of a comprehensive solution to automate the company’s key business processes
  • Ensuring uninterrupted local accounting and generation of management reporting
  • Elimination of paper document flow for key business processes of the company
  • Optimization of the procurement management process and payments to contractors
  • Budget control of purchases and outgoing payments
  • Optimizing the quality and speed of execution of purchase requests
  • Standardization and optimization of payroll calculations
  • Reducing labor costs for accounting and payroll calculations
  • Warehouse control
  • Improving control over the supply chain of goods, improving the quality of stock, reducing defects in stock, increasing the efficiency of claims management
  • Optimization of the process of providing employees with personal protective equipment in accordance with issuance standards and individual biometric data
  • Speeding up and eliminating inconsistencies in HSE reporting
  • Increasing performance discipline on HSE-related tasks
  • Accelerating the speed and improving the quality of IT services
  • Optimization and standardization of processes for managing maintenance and repairs of the oil pipeline and related infrastructure
  • Organization of recording of defects, planning and execution of measures to eliminate them
Project Results
  • The listed project goals have been achieved
  • System in industrial operation
  • KPC highly appreciates the implementation results and their positive impact on the company’s critical business processes
  • The results achieved by KPC during automation are highly appreciated by partner companies
  • In the future, KPC plans to continue automation of other functional business areas using 1C software products
  • Experience has been generated and solutions have been implemented that are ready for rapid implementation and automation of various tasks for other clients in the region, taking into account the needs of the local market and the requirements of Iraq legislation

The uniqueness of the project

  • The first comprehensive implementation of Russian software solutions for automating an oil service company in the region of Iraq has been successfully completed.
  • The following blocks have been automated: Local GAAP, IFRS, Reporting, Procurements, Tendering, Supply Chain Management (SCM), Warehouse Management System (WMS), Treasury, Budgeting, Payroll, Human Resource Management (HRM), Computerized Maintenance Management System (CMMS), IT Service Management (ITSM), Health, Safety, and Environment (HSE), Document Management, Master Data Management (MDM), Employee Portal, Supplier Portal, and Claim Management.
  • Prepared software-methodological kits have been formed for rapid implementation of local accounting and payroll accounting in Iraq. The automation of Local GAAP and the peculiarities of local legislation was achieved using mechanisms within the "1C: ERP WE" subsystem with minimal changes to the base configuration.
  • Payroll calculation and personnel accounting have been automated in compliance with Iraqi legislation.
  • An innovative self-service Supplier Portal has been established in the region, enabling suppliers to independently track and record the provision of services or delivery of goods at various stages of the contract. They can initiate payment requests as contract obligations are fulfilled.
  • Industry-specific solutions have been localized and implemented, such as HSE - '1C: Industrial Safety. Occupational Safety' and ITSM based on 1C ITIL. A supplier tender platform has been developed as a web application using the 1C: Enterprise platform.
  • A CMMS subsystem (Maintenance and Repair) has been developed to manage the technological maintenance of the pipeline, plan and execute activities, and oversee defects. It supports various planning methodologies, scenarios, and cross-functional responsibility zones, including an interactive pipeline diagram.
  • Complete automation of document flow has been achieved using 1C: Document Management, including the unique implementation of electronic-digital signatures in the region.
  • An employee personal cabinet has been implemented, enabling company employees to interact with the HR department on a wide range of issues (requesting personnel documents, approval of vacations, overtime, submitting sick leave, annual evaluations, etc.).
  • A unique employee training system has been developed and implemented, combining a differentiated approach, gamification, and classical educational processes tailored to regional specifics.
Used software
1C ERP World Edition 1C Document Management 1C Industrial Safety. Occupational Safety 1С ITIL 1C ERP (HR & Payroll module)
Difficulty of implementation
  • Organizing the presence of key project team members at the KPC office in Iraq
  • Mixed work mode (face-to-face + remote format)
  • Single-entry visas are valid for 30 days and the duration of obtaining a repeat visa is up to a month
  • The need to plan the presence of employees so that the right consultants are on site at the right time and do not fall into the visa expiration period / lengthy visa period
  • Specifics of conducting trainings and education with the assistance of translators (Eng->Kurdish)
  • Maintaining a fine balance between local features of operational accounting and standard functionality of Russian solutions to achieve optimal results
  • The need for detailed documentation and support of the company’s counterparties to attract them to the unique tender platform and Supplier Portal for Iraqi Kurdistan
Project Description
Kurdistan Pipeline Company Pte. Ltd. (“KPC”) was established in 2017 to manage and operate an export pipeline in the Kurdistan Region of Iraq for a period of 20 years in accordance with the Concession Agreement signed between KPC and the Kurdistan Regional Government (Iraq). The company operates the Kurdistan Crude Oil Pipeline (KCP), which receives crude oil from several oil fields and has several stations with two feeder lines.

The project primarily included functional blocks: Local accounting and tax accounting, International accounting, Treasury, Procurement, Reporting. The introduction of these functional blocks made it possible to significantly reduce paperwork, reduce labor costs for accounting and reporting, and organize the activities of the procurement department.

Strategically, the success of the first stage of automation made it possible to increase customer confidence in the software products of the 1C family and to announce the 1C: Enterprise platform for automating the second stage of functional blocks: Procurement Management (tenders), Supplier Self-Service Portal, Warehouse, Claims Management, Document Flow, Management personnel, Accounting and payroll, Occupational safety, ITSM.

The idea of implementing an employee’s personal account was a great success. This module is the company’s most popular application; in the first month, more than 650 Vacation Requests were issued.

After ensuring all the associated accounting processes were automated, the main block of the company’s activities - pipeline maintenance - was subjected to automation. The 1C:ERP WE repair management subsystem was taken as a basis. Planning scenarios and task generation mechanisms were developed, the pipeline structure was introduced into the system and normalized, and maintenance schemes were developed and recorded. Within the Repair Management block, more than 75 jobs have been automated.

Total labor costs of the project team (customer and contractor): 230,500 man-hours.
Project geography
Erbil, Iraq
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