Well Management Company Deploys Blockchain-Backed Smart Contract Network, GumboNet, to Deliver Trust and Transparency Between Counterparties
Data Gumbo, provider of GumboNet™ — the massively interconnected industrial smart contract network secured and powered by blockchain, today announced that Well Expertise, the well management company providing plug and abandonment (P&A), exploration, appraisal and development planning, in addition to operational support, software, environmental and other sustainable resources, has adopted GumboNet™. As the first well management company to globally deploy smart contracts across its well portfolio for frame agreements and well contracts with Wellesley Petroleum, Well Expertise will leverage GumboNet to improve workflow processes, automate invoicing and payments between the two parties, and aid in real-time operational cost control.
“Well Expertise selected GumboNet because of the network’s ability to monitor operations, consumptions and spend,” said Morten Laget, Business Development Manager, Well Expertise. “We are showing our commitment to stepping into the digital future by leveraging blockchain-backed smart contracts to improve and automate manual processes and unlock carbon footprint data to help achieve our sustainability goals. Smart contracts deliver the trust and transparency necessary to realize true value by streamlining operations, and making more informed strategic decisions with counterparties.”
Longstanding invoicing and billing challenges exacerbate counterparty friction and lead to outstanding days sales outstanding (DSO). On average, DSOs in Europe hover around 35 days with other locations upward of 200. A lack of supply chain transparency and payment processes based on estimates and accruals instead of exact, real-time data further exacerbates invoicing and payment issues.
“Wellesley Petroleum is pleased to utilize smart contracts to digitize and improve our business model,” said Callum Smyth, Operations Manager, Wellesley Petroleum. “With Well Expertise leading the innovation charge, we are excited to leverage GumboNet to capture value and deliver efficiencies to both parties.”
With GumboNet, smart contracts offer a better approach to commercial relationships — one that streamlines operations and decreases informational and transactional friction. By providing a single immutable record of truth, GumboNet synchronizes data across parties for complete transparency to free up working capital, reduce contract leakage, enable real-time cash and financial management and capture provenance.
“GumboNet has been adopted by large global companies, but also by smaller operators and their suppliers to realize savings and transparency in their value chain,” said Ove Sandve, Norway Country Manager, Data Gumbo. “We are excited about this opportunity to leverage blockchain and add value for Well Expertise and Wellesley Petroleum as they undertake next steps on their smart contract journey.”