AFE Transformation

Sia Partners has developed a specific offering to transform the AFE process, in collaboration with Appian.

You can find our detailed Insight here.

Authorization for Expenditure

The Authorization for Expenditure (AFE) business process is the main way in which energy companies create and approve project funding proposals and allocate capital to develop new assets. The prevailing AFE business process can be arduous and inaccurate, but will dictate the investment of billions of dollars for Oil & Gas companies. Unfortunately, for most industry players, the current AFE Process is inefficient and ineffective at controlling costs. The industry as a whole is allowing far too wide an acceptable range for AFE estimates, and worse, isn’t able to progressively learn from previous missed estimates. Missed earnings based on poor cost estimates have been an industry problem for years. This is highlighted over and over again by each individual AFE that misses its mark. Even more alarming, most energy companies don’t take into account historical lessons learned on AFE “misses” when producing the next AFE. This type of behavior perpetuates the lack of financial discipline and continues to push away investment from financial markets.

Future State of AFEs

While the focus of AFE Transformation is to fix current state issues, it’s also vital that your AFE Transformation prepares your organization for the Future State of AFEs.

The way you manage, evaluate, and improve your business is constantly changing. Your new AFE Process should incorporate a structure in which it can organically evolve along with the organization, without complete procedural overhauls. RPA will help facilitate any future changes your organization may make to your AFE procedures because it works seamlessly with existing enterprise software and architecture.

Your AFE Transformation

Sia Partners has a dedicated Houston based Oil & Gas Advisory team with decades of industry experience. As one of our core offerings, Sia Partners’ Houston Energy & Advisory team is trained and experienced in AFE Transformation, and supported by over 70 data scientists. Sia Partners helps organizations overcome the hurdles associated with implementing exceptional financial discipline through a sophisticated AFE examination and implementation process. We provide expert support and advice on each hurdle of AFE Transformation through our domain and functional experiences with project management, finance, accounting, and change management.

Sia Partners in Partnership with Appian

Appian is a recognized global leader in multiple enterprise technology markets including intelligent business process management systems (iBPMS), dynamic case management (DCM), digital process automation (DPA), and low-code development.

In partnership with Appian, Sia Partners has the ability “to turn great ideas into powerful business applications that deliver significant value.”