Corporate treasury initiatives

MENA oil producers’ treasuries face very different

challenges from those in regions such as Asia and

countries such as Australia. Rather than having to

devote their energies to cost saving and liquidity

optimisation, they are opting to invest in efficiency more

generally. As a result, there is a concerted effort among

MENA oil producers to bring their treasury and financial

processes to the level of automation and efficiency of

global oil multinationals.

For example, some national oil companies in MENA

operate as multiple autonomous entities, but are now

looking to centralise their financial processes. This is not

a trivial task, as it is not uncommon for companies (and

subsidiaries of companies) in MENA to each operate

their own home grown ERP systems. This typically

results in rather manual and time-consuming processes

when compared with using a major industry-standard

ERP system.

As a result, many oil company treasuries in MENA are

keen to review their processes in conjunction with a

banking partner experienced in global best treasury

practice. These reviews are then often used as the

basis for the implementation of a leading commercial

ERP system. This in turn enables the automation and

centralisation of processes, as well as opening the door

to the adoption of industry standards such as SWIFT.

Published: March 2016

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