Tackling rapid-growth hurdles with AI

Rapid business growth brings its own set of challenges. When a U.S. oil and gas company acquired more than 10,000 new land leases, they realized their contract-review process would need to evolve quickly. Performing contract due diligence, administering royalties, and assessing parcels for development potential are intricate and time sensitive. Already committed to industry-leading technology, the company asked KPMG to deploy its Ignite cognitive contract management (CCM) approach in order to streamline existing processes and prepare for future expansion.

KPMG leveraged its Ignite CCM platform as the foundation for a purpose-built, industry-configured client solution. The collaborative team:

• extracted, structured, and classified previously unstructured data from more than 10,000 newly acquired lease contracts

• applied optical character recognition (OCR) tools in addition to proprietary natural language processing (NLP) and machine learning models

• leveraged our understanding of oil and gas royalty payment exemptions to simplify and accelerate contract-portfolio analysis via the use of exemption clusters as opposed to individual lease review. The clusters enabled a 97% reduction in the number of necessary reviews.

• empowered subject matter experts to quickly identify risk, value leakage, and value creation opportunities across the portfolio via interactive dashboard reporting

• positioned the company for future portfolio growth through scalable AI capabilities.

KPMG has helped position the company to accelerate return on investment, simplify processes, and capture growth opportunities from its contract portfolio at scale. Specific benefits include:

• the reduction of individual complex lease review time from hours to minutes

• an increase in accurate royalty payments to land owners

• improved speed, accuracy, and anomaly detection in contract review enabled by artificial intelligence (AI), reducing resources and task-laden dependence on subject matter specialists

• the ability for the client to leverage new dashboard reporting to review their producing acreage, as well as planning future exploration and production

• scalable CCM model in place to help accelerate the review of additional acquired leases and potentially accelerate ROI across the company’s lease portfolio.

Our oil and gas team advises large and diverse companies around the world, including global corporations, independents, refining and oil service firms, and national oil companies. Our industry-leading approach is designed to help companies earn rapid returns on investment, simplify processes, capture growth opportunities in new markets, and contribute to higher organizational efficiency.

KPMG Ignite portfolio of AI capabilities includes KPMG-developed technology, leading open-source tools, and secure, scalable services from our diverse alliance ecosystem—allowing us the ability to move much faster, with less disruption to the organization.