Unocal, Schlumberger Oilfield Services, and Digital Oilfield describe the successful automated electronic exchange of invoicing information as an industry milestone. The test made use of the Petroleum Industry Data Exchange (PIDX) XML Transaction Standards. Unocal received and processed an invoice from Schlumberger through Digital Oilfield's OpenInvoice hosted application. "Schlumberger created an invoice in the PIDX standard format directly from its ERP system. The invoice and corresponding service delivery ticket were then transmitted utilizing the RNIF (RosettaNet Implementation Framework) Transport, and Routing Protocol directly into Digital Oilfield's OpenInvoice application. Unocal then used OpenInvoice's functionality to route, code and approve the invoice. Once approved, the invoice was automatically uploaded to Unocal's financial system for payment." PIDX is the American Petroleum Institute's (API) committee on Electronic Business. Its mission is "to influence the architecture and facilitate implementation of effective standards and processes for electronic business communications within the petroleum industry community. PIDX projects have reengineered entire business processes and operations for greater efficiency and profitability through the implementation of Electronic Data Interchange (EDI) and emerging Electronic Business technologies such as the Internet and XML." The Business Messages Workgroup under the PIDX Standards and Guidelines Subcommittee "develops and maintains PIDX's business message standards for electronic commerce, encourages the adoption of and use of PIDX's business message standards, and collaborates with other industries in developing standards for the oil and natural gas industry." The group recently published a PIDX ebXML Message Service Specification supporting transport, routing and packaging (TRP); this software specification is compliant with the OASIS ebXML Message Service Specification (ebMS).

From the Announcement

"Unocal, Schlumberger and Digital Oilfield, along with a number of other operating companies and suppliers, have been active participants in PIDX over the last few years. We now know that the PIDX RNIF standard works in a production environment," said Mike Comeau, e-Procurement Tools Manager for Unocal. "Unocal has an ongoing strategy to drive down costs through the use of technology that helps us change our processes.

"This first PIDX XML invoice is a significant step forward for our industry," continued Comeau. "The entire process complies with industry standards and will change the way we transact with our trading partners. This creates a win-win for both operators and suppliers as it reduces transaction costs on both sides of the equation."

Adds Mark Bruno, Unocal Project Manager, "We have very aggressive company goals set for the implementation and ramping of this solution. Successful adoption and use of the transaction standards keeps us on track for meeting these goals and providing significant value to the corporation."

PIDX (Petroleum Industry Data Exchange) is the Electronic Commerce Committee of the American Petroleum Institute (API), the primary trade association representing all phases of the oil and gas industry. By adopting the PIDX XML transaction standards, Unocal now has the capability to seamlessly receive, match and reconcile (approve or dispute) Schlumberger service delivery tickets, invoices and associated business documentation. Electronic documents now flow between Schlumberger field delivery and ERP systems through Digital Oilfield's OpenInvoice system to Unocal's Accounts Payable system. This opens up the possibilities for widespread industry adoption of standards by other operating companies and suppliers.

"The elimination of manual tasks and paper documents provides Unocal and Schlumberger true interoperability, removing any requirements for manual intervention," said Terry Thomas, eContext Development Manager, Schlumberger Oilfield Services. "The result is a reduction in total system costs for both trading partners."

"Many suppliers have been using our Web-based interface for invoice transactions with Unocal for the last year. However, we knew that a fully electronic solution -- from ERP system to ERP system -- was required for the larger suppliers. All of the parties worked closely together to make this happen. It truly has been a collaborative effort among Unocal, Schlumberger and Digital Oilfield," said Rod Munro, President and CEO, Digital Oilfield.

About PIDX

"PIDX (Petroleum Industry Data Exchange) is the Electronic Commerce Committee of the American Petroleum Institute (API), the primary trade association representing all phases of the oil and gas industry. PIDX provides a forum for delivering the process, information, and technology standards. PIDX's vision is to achieve petroleum industry and enterprise-wide integration of business processes through seamless electronic business communication. PIDX's mission is to influence the architecture and facilitate implementation of effective standards and processes for electronic business communications within the petroleum industry community. In addition, PIDX seeks to leverage the inherent value in existing EDI standards as well as actively pursue the benefits of emerging e-Business technologies."

"PIDX projects have reengineered entire business processes and operations for greater efficiency and profitability through the implementation of Electronic Data Interchange (EDI) and emerging Electronic Business technologies such as the Internet and eXtensible Markup Language (XML)... PIDX seeks to leverage the inherent value in existing EDI and XML standards as well as actively pursue the benefits of emerging e-Business technologies. PIDX realizes its objectives through its Committees, Subcommittees, Workgroups and Specific Interest Groups. Members are encouraged to participate in the Subcommittees, Workgroups, and Specific Interest Groups to insure that PIDX is meeting defined business objectives..."