Around 20 billions barrels of water are produced every year onshore US from more than 1.5 millions oil and gas wells. This water is stored in tanks, requiring about 100 million truck rotations to recycle it. Each rotation involves a full Order-to-Cash process including a Service Request, a Field ticket, an Invoice and a Payment between the water hauler and the producer. This largely manual, paper-based process is hugely inefficient and costly at at a time when the industry is in great need of efficiency through automation. We will discuss how IoT on water tanks combined with a central integration B2B cloud platform can save money and optimize operations. First seen at the Liveworx 17 Technology Conference and Marketplace

1. ONDIFLO AMALTO
AUTOMATION OF ORDER-TO-CASH
PROCESS IN OIL AND GAS FOR
WATER MANAGEMENT SERVICES
Jean-Pierre Foehn
CEO Amalto Technologies

2. 2O N D I F L O A M A L T O
AGENDA
1. A brief introduction: Amalto Technologies
2. Water management O2C in O&G : a
poorly managed process
3. Fixing the problem by integrating IoTs and
blockchain
4. A business case
5. Go to market strategy
6. Beyond O2C- beyond O&G
7. Integration of the financial and physical
supply chains

3. 3O N D I F L O A M A L T O
AMALTO
TECHNOLOGIES
THE O2C
COMPANY
- LEADER IN B2B INTEGRATION
- OPERATING FULLY MANAGED
PRIVATE CLOUD PLATFORMS
- 5O CUSTOMERS IN O&G
- HOUSTON, CALGARY AND
PARIS
ERPs, legacy systems,
accounting solutions,
databases...
ENTERPRISE
Support, monitoring and
application management
Suppliers
Saas Solution Providers
Logistics Providers
Banks
Customers
Field Operations

4. 4O N D I F L O A M A L T O
THE PROBLEM:
O2C FOR WATER MANAGEMENT
A POORLY MANAGED PROCESS

5. O N D I F L O A M A L T O 5
US SHALE PLAYS MAP

6. O N D I F L O A M A L T O 6
• 10 times more “produced
water” than oil
• Not including hydraulic
fracking
• Thousands of operators
and hundreds of water
haulers
• Specific challenges
related to unmanned
locations
20 BILLION BARRELS OF H2O FROM 1.6 MILLION WELLS

7. O N D I F L O A M A L T O 7
• 50 to 100 million truck
rotations per year
between the wells and
the recycling sites to
dispose of the
produced water
A VERY ACTIVE BUT LOW TECH INDUSTRY

8. O N D I F L O A M A L T O 8
A POORLY OPTIMIZED PROCESS: THE PUMPER STORY

9. O N D I F L O A M A L T O 9
• Truck scheduling and
dispatching not efficient
• Very labor intensive
• High DSO (80 to 100
days)
• Poor cash flow
management
• Poor auditability
• Limited compliance to
EPA rules
LARGELY MANUAL AND PAPER BASED ORDER-TO-CASH

10. 10O N D I F L O A M A L T O
THIS IS HOW IT
IS DONE TODAY

11. 11O N D I F L O A M A L T O
THE SOLUTION:
A PLATFORM WITH BLOCKCHAIN
SMART CONTRACTS TRIGGERED BY
IOTS

12. O N D I F L O A M A L T O 12
CONNECTING ALL STAKEHOLDERS AND ASSETS TO A
DISTRIBUTED CLOUD PLATFORM
IoTs on Water Tanks
Water Hauler
Oil Producer
Bank

13. O N D I F L O A M A L T O 13
AUTOMATION OF THE PROCESS END-TO-END
IoT devices on
water tanks
Service
Request
IoT Cloud
Producer Water Hauler
Alert
Field Ticket
Invoice
Payment
Field Ticket
Invoice
Smart contracts
in blockchain

14. O N D I F L O A M A L T O 14
INTEGRATION OF IOT CLOUD AND BUSINESS LOGIC CLOUD
Blockchain nodes

15. O N D I F L O A M A L T O 15
ONDIFLO: DETAILED FUNCTIONALITIES

16. O N D I F L O A M A L T O 16
WHAT IS BLOCKCHAIN: A DISTRIBUTED AND ENCRYPTED
LEDGER – A PEER TO PEER NETWORK
• A business network where members exchange items of value
through a ledger which each member possesses and whose
content is always in sync with the others
• A blockchain stores the complete transaction history
• Tampering is virtually impossible (due to blockchain
consensus algorithm)- immutability of data
• A smart contract is a distributed computer
program
• The code can affect tangible transactions. The
smart contract will actually complete the contract
• In blockchain, information that is verified can
trigger the smart contract

17. O N D I F L O A M A L T O 17
ALL STAKEHOLDERS SHARE A DISTRIBUTED LEDGER BUT
TRANSACTIONS ARE PRIVATE- PERMISSIONNED BLOCKCHAIN
Producers
Regulator
Service
Providers
Bank
Blockchain node
Logos for illustration purpose only

18. O N D I F L O A M A L T O 18
Alert
triggering
Service
Request
Volume
discharged
triggering
Field Ticket
Field Ticket
Approval
triggering
Invoice
Invoice
Approval
triggering
Payment
4 SMART CONTRACTS IN ONDIFLO LEADING TO FULL AUTOMATION

19. O N D I F L O A M A L T O 19
• Collaboration between untrusting parties (disputes)
• Increased transparency desired (with regulators, partners)
• Synchronicity across locations/ functions/ entities (from the field
to the back-office/ operations and finance/ producers and
service companies)
• Full auditability (at all points of history) needed
• Automation of business processes
• IoTs
• Transfer of value (payment)
WHY BLOCKCHAIN MAKE SENSE IN THIS CASE

20. O N D I F L O A M A L T O 20
ONDIFLO SOLUTION : FROM SR TO FTKT
20
1. Alert
Water
level
Water
Hauler
Producer
2. SR
3. SR Ack +
dispatching
6. Driver ID + tank ID
Amalto e-BC with smart
contracts in blockchain:
§ Producer
blockchain node
§ Water hauler
blockchain node
§ SR: Service Request
§ SR Ack: Service Request
Acknowledgement
§ FTKT: Field Ticket
7. FTKT
7. FTKT
4. Dispatching + SR
3. SR Ack
3. SR Ack
5. Discharge
2. SR
7. FTKT
2. SR
5. Discharge

21. O N D I F L O A M A L T O 21
ONDIFLO SOLUTION: FROM FTKT TO PAYMENT
Water
Hauler
Producer
§ Producer
node
§ Water hauler
node
§ Bank
node
§ FTKT: Field Ticket
§ FTKT R: Field Ticket
Response
§ INV: Invoice
§ RA Remittance Advice
8. FTKT R
8. FTKT R
8. FTKT R
7. FTKT
7. FTKT
7. FTKT
9. INV
9. INV
9. INV
9. INV
9. INV
11. RA
11. RA
11. RA
11. RA
11. RA
10. Payment

22. 22O N D I F L O A M A L T O
BUSINESS CASE

23. O N D I F L O A M A L T O 23
A WATER HAULER BUSINESS CASE
• Water hauler serving a
very large operator in
West Permian and Bakken
• $62M in annual sales
• 58,000 truck rotations/
loads/ field tickets
• 6 FTE
• Payment terms : net 30
• Annual savings supplier
only: $1.5M

24. O N D I F L O A M A L T O 24
• Cost savings for the industry : $Bn1 to
$Bn3
• Working capital impact
• Automation: addressing downturn
related layoffs and aging population
• Environmental impact of better truck
routing
• Better compliance to EPA/ TRRC
regulations (illegal dumping)
IMPACT AT THE INDUSTRY LEVEL
Estimated cost reduction overall
• $25 to $50 / truck rotation
• $2500 to $5000 / well / year

25. 25O N D I F L O A M A L T O
GO TO MARKET STRATEGY

26. O N D I F L O A M A L T O 26
A PLATFORM MODEL WITH AN OPEN API
Payment
SCADA
Data
Service
Request
Field
Ticket
Field
Ticket
Service
Request
Truck scheduling
e-field ticketing
Device management
E-invoicing
Drilling cost capture

27. O N D I F L O A M A L T O 27
A SAAS MODEL TO ACCELERATE ADOPTION AND DELIVER ROI
• An integrated service with zero CapEx
– Customers will have the option of not investing in their own
field hardware (Ondiflo IoTs)
• A fully managed service including:
– Equipment monitoring, system integration, transaction
monitoring, etc…
• Pricing model for producers and fluid haulers
– Annual subscription fee to the Ondiflo platform (depending on
the type of services used)
– Transaction fee (per truck rotation / field ticket)

28. 28O N D I F L O A M A L T O
BEYOND O2C
BEYOND O&G

29. O N D I F L O A M A L T O 29
OPTIMIZED RESERVOIR MANAGEMENT WITH PREDICTIVE ANALYTICS
IoT devices on
water tanks
4/ Reservoir
ManagementIoT Cloud
2/ Payment
3/ Water Disposal
Manifesto
Water
Hauler
1/ Dispatching
Producer

30. O N D I F L O A M A L T O 30
UBER FOR SMALL WATER HAULERS

31. O N D I F L O A M A L T O 31
ONDIFLO BEYOND WATER HAULING
• Other fluid hauling services
In O&G
– Chemicals
– Diesel
– Oil production
• Automation of other field
services in unmanned
locations
– Compressor
maintenance
– Wind turbine
maintenance
– Waste management
– Propane distribution
– Telco towers
– …

32. O N D I F L O A M A L T O 32
FUEL DISTRIBUTION BILL OF LADING (BOL) USE CASE
• A BOL is created to document the
amount of fuel picked up at terminal
• Once fuel is delivered (could be one or
multiple sites), another BOL is created
showing the field volumes delivered
– BOLs are manually keyed into the
system.
– Reconciliation can often take
several days
– Terminals/3rd party freighters want
to be paid net 1 day - which causes
a significant gap in collection/
payment.
Challenges in BOL reconciliation
generate delays in invoicing and
payments
32

33. 33O N D I F L O A M A L T O
OUR MODEL:
INTEGRATION OF
THE FINANCIAL
AND PHYSICAL
SUPPLY CHAINS
Kit Carswell CGI
For the banks, there is a tremendous benefit in having visibility into the
financial supply chain’s digital documents
SERVICE TO PAYMENT IN ONE DAY

34. 34O N D I F L O A M A L T O
Q&A
POWERED BY
jeanpierre.foehn@amalto.com