Search
 

Gold AHA Winner in Cash Management

Cloning Treasury for a Split Company: ConocoPhillips

Diana Noteboom, IT business analyst, finance, ConocoPhillips; Tammy Burks, director of treasury services, Phillips 66; and Judy Bouchard, banking director, ConocoPhillips

Houston-based ConocoPhillips didn’t have to invent a state-of-the-art treasury operation. It already had one, using SAP’s treasury and risk management module within its single global SAP ERP system. But it had to clone that operation quickly and seamlessly when the board of directors decided to split the company in two, making ConocoPhillips an independent exploration and production company with $65 billion in projected annual revenue and putting the downstream businesses into a new company, Phillips 66, with projected revenue of about $190 billion. To minimize the changes, the company decided not to use any new systems or providers. But extensive, complex streams of payments and receipts had to be surgically separated so that each company would be operating securely and efficiently from the go-live date of May 1.

 A global treasury separation project team started working in January with the company’s three banks, J.P. Morgan, Bank of America Merrill Lynch and Deutsche Bank. “All receipts and disbursements, including lockbox, wires, checks and ACH activities, had to be coordinated across the various groups,” notes Tammy Burks, director of cash and reconciliations at Conoco. “Because transactions were commingled under ConocoPhillips’ pay-and-receive-on-behalf-of structure, a whole year’s worth of data from more than 700 accounts globally had to be analyzed to identify each bank account’s activity and supporting processes.”

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Treasury and Risk

Treasury and Risk

Treasury and Risk Staff Writers

More from this author

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.