E&P Hart: Back To Basics On Seabed Surveys
Seabed images tend to depict the ocean’s floor as a flat, sandy environment. This is not always the case. In fact, companies that want to install a subsea development scheme spend a lot of time and money characterizing the seabed before the first item of kit is installed.
E&P recently spoke to Brian Mackenzie, service line director of Marine GeoConsulting, Europe & Africa, at Fugro Survey Ltd. about the concerns that operators face when planning a subsea development.
E&P: What are some of the main considerations when conducting a seabed survey?
Mackenzie: We would always start with the end-goal of working with our client toward the successful design and installation of seabed infrastructure.
Implicit in ‘successful design and installation’ is its safe and reliable operation and assured asset integrity over its design life. With that in mind, considerations would include what the client is planning to build. The layouts associated with subsea and offshore projects can be complex, and also the shape, size and weight of the installed equipment affect its interaction with the seabed and determine the coverage and type of survey required.
Often the layout, or indeed the equipment to be installed, may not be known at the time of the survey. This certainly makes things interesting because, rather than surveying to a known pattern or layout, we would try to characterize some overall volume of seabed, and from that we would be able to help the client identify the optimum development site within the overall notional project area.
Our first question when receiving an inquiry from a client about a survey is, ‘What is it for?’ Then we start to think about the seabed itself, with the most fundamental question being, ‘What’s the water depth?’, because that would determine the choice of platforms available from which to conduct the survey as well as driving the development concept on the client side.
Once we know the client’s development plans, location and water depth, the next consideration is the seafloor and the sub-seafloor itself as well as its features and ground conditions.
We aim to identify the constraints and hazards that might be posed to the development (for example, any adverse ground conditions). This could simply be excessively soft or sensitive sediment that can’t support infrastructure or, conversely, hard ground or buried rock that poses installation risk. Then there could be a whole host of hazardous features such as faults, steep slopes or gas expulsion features to be taken into consideration.
These are static features that can sometimes be readily identified simply by examining the bathymetry, but it’s also necessary to consider dynamic features such as a mobile seabed. This is something that tends to be talked about more in the offshore renewables sector rather than in oil and gas field development. For example, there is a wind farm development off the U.K. coast that has been built on what turned out to be a mobile sandbank, so the ground is actually shifting.
These are dynamic hazards that you wouldn’t necessarily see in a snapshot survey. And in the so-called ‘frontier developments’ around the world, there may be other dynamic geohazards. The classic threats in such environments include steep unstable slopes characterized by very soft sediment and earthquake-prone environments. These can trigger instability, essentially a soil avalanche developing into a debris flow, with huge amounts of energy and the ability to cause a lot of damage if not destruction. Such geohazards are a crucial consideration in a seabed survey.
Another important point is that in such circumstances the threat to the subsea development can actually originate some distance from the development itself. It could be tens of kilometers away, so in considering and planning the survey, not only are we interested in where our client is going to build, but we may also be interested in the surrounding seabed terrain and the source of threats to the development.
Once the inherent hazards have been examined, we investigate the actual engineering properties of the seabed itself such as the characteristics that tell us, for example, what load it can support, whether its strength might degrade over time and what foundation settlement might be expected. Those engineering properties feed directly into the design process, so they drive the foundation sizing and configuration as well as the selection of installation equipment and therefore any direct financial consequences relating to the characterization.
In the wider context of marine site characterization the environmental habitat conditions are also important, so we can assess the impact of a development against those baseline conditions. Metocean conditions are also important, as waves and seabed currents will determine the load on what the client builds.
IOG: Operational Update
Independent Oil and Gas plc (“IOG” or the “Company”), the development and production focused Oil and Gas Company is pleased to provide an update on the operational progress of its Southern North Sea gas hub developments.
Blythe and Vulcan Satellites Hub Developments
The Company continues to make progress at its two 100% owned gas hubs, which consist of five fields with independently verified 2P reserves of 303 BCF. The Environmental Impact Assessment has been submitted for the Blythe hub, which includes the Blythe and Elgood fields, in line with milestones agreed with the Oil & Gas Authority (“OGA”).
IOG remains on track for Field Development Plan (“FDP”) approvals for both hubs by the end of August 2018, in line with agreed OGA milestones. First gas is scheduled for Q4 2019, subject to project financing. The Company expects to issue an update on funding shortly as well as further operational updates on contractors and project schedule in due course. In the meantime, the Company remains reliant for its general and administrative costs on the loan financing in place with London Oil & Gas.
Preparatory work on the Thames Pipeline continues to progress in line with the Company’s plan to capture this major strategic asset at minimal cost. Upon recommissioning, the line will be an important piece of export infrastructure, turning stranded fields into valuable gas assets with direct market access. This will save the Company up to £100m in capital costs and opex of a similar order or magnitude over project life, as well as creating a strategic area of opportunity for the Company potentially to acquire and develop further assets in due course.
The regulatory approvals process is now at an advanced stage for the acquisition of the Thames pipeline which will include the appointment of the Company’s wholly owned subsidiary, IOG Infrastructure Ltd, as the pipeline operator. The Sale and Purchase Agreement completion deadline has been extended by one month to the end of February 2018 to facilitate this.
Operational work continues in parallel with the pipeline acquisition closing process. On 27 January 2018, IOG mobilised the MV Fugro Galaxy to undertake an extensive site survey programme. This covers the Thames Pipeline and the proposed pipeline routes connecting it to all five fields, as well as all rig and platform locations. This is an important step ahead of intelligent pigging operations on the Thames Pipeline, which is required to confirm integrity and fitness for purpose as the Company’s key export route.
EMGS: Q4-17 Results due 8 Feb 18
Electromagnetic Geoservices ASA (EMGS) will release its fourth quarter 2017 results on Thursday 8 February 2018.
CEO Christiaan Vermeijden and CFO Hege Veiseth will present the results from 10:00 CET.
The presentation will be broadcasted live over the Internet, and the webcast can be accessed on www.emgs.com. It will be possible to post questions through the webcast.
The quarterly report and the presentation will be available for download on EMGS’ website www.emgs.com and the Oslo Stock Exchange, www.newsweb.no from about 7:30am on Thursday 8 February 2018.
Bangladesh: Deep Water Exploration
Bangladesh is suffering from severe gas supply crisis over the past several years. Chronic gas deficit has affected fertilizer production, power generation and even operation of industries, including export-oriented industries. Many investors invested their fortune in setting up new industries are in serious anxieties about getting gas supply for commencing production.
The government has initiated the process of importing expensive LNG for meeting the gas deficit. We are aware that setting up of FSRU, land-based terminals and importing LNG from the volatile global market alone require time and huge investment and consequently would create great vulnerability in the long term energy security. A country like Bangladesh having very limited opportunity for setting up enabling infrastructure for imported fuel should not rely almost exclusively on imported fuel. Bangladesh is a least explored riverine delta. One cannot completely rule out the possibility of finding new petroleum resources in onshore and offshore areas. Bangladesh needs to have right mix of own and imported fuel for ensuring long term energy security. We have to explore and exploit our own petroleum resources to the fullest extent. But unfortunately the present exploration campaign is well below the required level. For the last 17 years very little exploration has been done. Proven recoverable gas reserve is fast depleting, raising concerns of getting completely depleted by 2030. Expediting the exploration campaign, the reserve must be replenished by further strengthening BAPEX technically and financially, and engaging IOCs in onshore tight structures, deep drilling, western region and offshore. Well planned and carefully executed exploration campaign can only change the scenario in 5-7 years. In the present state, offshore exploration campaign is on a destination unknown.
Successful resolution of long standing maritime dispute of Bay of Bengal with Myanmar and India came as a blessing. We could start getting the benefits from our offshore resources by now if we could plan exploration program properly and implement professionally. Our next door neighbors, Myanmar and India, have advanced to a great extent in offshore explorations in the Bay of Bengal over the past five years. Bangladesh was the first country entering the Bay of Bengal for offshore exploration immediately after liberation. It was indeed a milestone achievement for the present government in its past term. It is also equally frustrating that Bangladesh in five years failed to even engage a contractor for conducting multi-client survey for acquisition of data and information of deepwater prospects. Bangladesh needs a database of information in its PSC package for attracting IOCs in considering risk-investment in deep offshore. Bangladesh also needs further updating of the draft model PSC to make this as attractive as the PSC documents of India and Myanmar. Needless to mention that IOCs have lost incentive in offshore exploration due to low pricing trend of crude oil in the global market. In the backdrop of chronic gas crisis prevailing in Bangladesh, it is very urgent that Bangladesh do everything possible to expedite exploration campaign in deep water alongside shallow water and onshore frontier areas.
The only success of offshore drilling was discovery and development of Shangu offshore gas field by a joint venture of Shell–Cairn and Holland Sea Research in late 1990s. First Cairn and then Australian company Santos operated the field for some years. Shangu came as a blessing for the gas-starved Chittagong region after major depletion of Bakhrabad and disputes with NIKO suspending works at Feni field. But depletion of Shangu also created curse for gas franchise in greater Chittagong. Bangladesh has so far failed to carry out very urgent offshore exploration in the offshore. Snatos with KrisEnergy JV partner is waiting for carrying out exploration in a shallow water block. Indian company ONGC is also working in two blocks — one of which is further development of Kutubdia gas field discovered by UNOCAL in 1970s. Daewoo Posco has signed PSC for two offshore blocks where ConocoPhilips worked for some years and later relinquished after failing to successfully renegotiate gas price. Apart from these, Australian company Woodside Petroleum has submitted proposal for carrying out exploration in five deep water blocks.
It may be mentioned here that after independence of Bangladesh, Bangabandhu-led government was the first in the region to enter the Bay of Bengal for offshore exploration. After formation of Oil & Gas Corporation (Now Petrobangla), Bangladesh in the shortest possible time could engage six IOCs in eight offshore blocks through formulating model PSC and inviting the first bidding round. But after unfortunate assassination of Bangabandhu along with most of the members of his family in August 1975, the IOCs left Bangladesh one by one. Petrobangla and Bangladesh failed to resume offshore exploration with the same intensity ever since. With vast offshore area, almost the size of Bangladesh, open for exploration, EMRD and Petrobangla have so far failed to engage contractor for conducting multi-client surveys for acquiring data and information of offshore petroleum resources. Bangladesh desperately needs preparing a database of information, without which IOCs may not show interest for making risk investments.
Chronological Development of Petroleum Exploration
One of the major initiatives of Petrobangla since its formation was organizing petroleum block bidding, evaluating offers, negotiating Production Sharing Contracts (PSCs), supervising and administering PSCs with International Oil Companies (IOCs). From 1974 to 2017, four bidding rounds were conducted.
In the first round of block bidding in 1974, six IOCs — Ashland, ARCO, BODC (Japan), Union Oil Company, Canadian Superior Oil and Ina Naftaplin — were awarded eight offshore blocks under PSCs. The companies conducted 31,069 km of marine seismic surveys and drilled seven wells. Kutubdia gas field was discovered by Union Oil Company in 1977. Before and after these exploration activities, maritime boundary disputes surfaced between Bangladesh and Myanmar, Bangladesh and India. IOCs started leaving Bangladesh and by 1978 all left abandoning the PSCs. Moreover, the essence of these PSCs was exploring oil. Finding no oil was a disincentive for the IOCs.
The first bidding round was followed by an interim period when Shell Oil Company (Shell) signed contract with Petrobangla for exploration blocks in Chittagong Hill Tracts (Block number 22). They were also awarded block 23 in the northern region. Seismic surveys were carried out and two exploration wells were drilled at Sitapahar and Salbanhat. An unfortunate insurgency act in CHT leading to abduction of Shell officials caused the company to leave Bangladesh. Scimitar Exploration Company was awarded a PSC for exploration in Surma Basin (later block 13). Jalalabad Gas field was discovered.
The next bidding round, named as second bidding round, was held in 1993. Four IOCs Occidental (blocks 12, 13 & 14), Cairn Energy (blocks 15 & 16), Okland-Rexwood (blocks 17 & 18) and United Meridian Corporation (Block 22) were awarded 8 blocks. The third formal PSC block bidding was conducted in 1997. Tullow-Chevron-Texaco-Bapex was awarded block 9. Shell-Cairn-Bapex was awarded blocks 5 & 10 and Unocal- Bapex was awarded block 7. During this bidding round, a mandatory provision of 10 percent carried interest for BAPEX was introduced and implemented for all blocks.
The fourth bidding round 2008 in the offshore attracted some IOCs, but maritime boundary disputes in most of the blocks acted as major impediment. However, the government could manage concluding PSC with ConocoPhilips for deep water blocks DS-10 & DS-11 on June 16, 2011. Conoco conducted 2,680 line kilometer 2D seismic survey in February–March 2012. They conducted additional 3,180 line kilometer 2D survey in the blocks in March–April 2013 for getting better knowledge of the blocks. It made a presentation on Comprehensive Technical Evaluation of the Petroleum Potential of Blocks DS -10 and DS -11 on 26 October, 2014. Considering further investment for exploration uneconomic, ConocoPhilips terminated PSC for blocks DS -10 and DS -11 and relinquished the blocks. From 15 June 2014, these blocks became free again.
Immediately after resolution of maritime boundary dispute between Myanmar and Bangladesh in March 12 by ITLOS, Petrobangla reorganized the blocks taking into account the new boundary. The PSC bidding round was announced in December 2012. Three shallow water PSCs have been signed with ONGC Videsh, Oil India & BAPEX Joint Venture — two PSCs for blocks SS-04 and SS-09. Santos, KrisEnergy and BAPEX JV have been awarded SS-11. PSC has also been concluded with DAEWOO–POSCO for DS-12, DS-16 & DS-21.
PGS: Mandatory Notification of Trade
Anne Grethe Dalane, Board Member of Petroleum Geo-Services ASA (“PGS” or “the Company”), has on February 1, 2018 bought 10 000 shares in PGS at a price of NOK 23.56 per share.
Following the transaction, Anne Grethe Dalane owns 10 000 shares in PGS.
Anne Grethe Dalane (1960)
Chair: Audit Committee (elected 2015)
Board member since 2013
Ms. Dalane is a senior executive at Yara International and previously held a number of senior positions at Norsk Hydro. She is currently Chief Financial Officer Downstream at Yara International. Her previous experience covers a range of fields including HR as well as oil and gas. She has been Region Director Latin America and Country Manager of Argentina. Ms. Dalane’s background is in economics and she holds a business degree from the Norwegian School of Economics NHH.
Erin Energy: Discovers Multiple Stacked Sands at Oyo-NW Well Offshore Nigeria
Erin Energy Corporation (“Erin Energy” or the “Company”) (NYSE American:ERN) (JSE:ERN) today announced that it has completed the drilling of the Oyo-NW well and, based on preliminary evaluation, it has discovered hydrocarbons in the Miocene Formation. The well is located approximately 9.5 kilometers northwest of the Oyo Central field on the Company’s offshore Nigeria block 120. The Miocene formation is where several of Erin Energy’s neighbors have discovered billions of barrels of hydrocarbons and from which several hundred thousand barrels per day are produced offshore Nigeria.
The Company is currently completing well-suspension activities so it can re-enter the well in the future for possible production.
“These results are very encouraging and support our technical team’s evaluation of the prospectivity of the Miocene and have significantly de-risked the other major Miocene prospects in blocks 120 and 121,” stated Femi Ayoade, Chief Executive Officer. “We will move quickly to appraise the discovery. The Miocene is the most prolific producing zone offshore Nigeria, and the presence of these hydrocarbons is a significant step forward in unleashing the value of the Miocene Formation in our blocks.”
The well was successfully drilled to the proposed total vertical depth subsea (TVDSS) of 12,218 feet and penetrated multiple sand units with total gross thickness of 260 feet in the depth range from 7,052 – 10,873 feet TVDSS as interpreted from wireline log data.(1)
Preliminary evaluation of the well data shows that the two main sand units, the Miocene U7.0 and U8.0, with a gross thickness of approximately 83.6 feet are hydrocarbon-bearing.(1) Work has commenced to estimate the discovered volumes and to determine the relevant appraisal and development program.
Freelancers / Consultants: Always Get Terms in Writing
One of the most stressful things about being self-employed is managing your cash flow. It’s especially difficult if clients don’t pay you on time. You can avoid most problems by putting a contract in place before you start an assignment. Don’t believe a handshake will suffice, even if you’re working with friends. Informal agreements are the source of almost every payment problem, so be sure the scope of the project, the payment terms, and the expectations for both sides are written down. For small projects an email chain will often suffice, but for longer engagements you should get a signed contract. Having a standard contract template that you can alter for different clients will make this easier — and save you time and headaches.
How Freelancers Can Make Sure They Get Paid on Time
One of the most stressful things about being self-employed is managing your cash flow. This is especially difficult when clients don’t pay you on time. What can you do to make sure your invoices are handled promptly? And if a client is late, how should you address it, especially if you want to work with this company again? Is there ever a point at which you need to involve a lawyer?
What the Experts Say
When freelancing is your primary source of income, you have to be meticulous and organized about keeping your books, according to Jon Younger, the founder of the Agile Talent Collaborative, a nonprofit research organization and the coauthor of Agile Talent. “If you’re not disciplined and rigorous about getting paid, you will not succeed,” he says. “It is a critical aspect of your reputation.” And yet, even if you do everything right, clients can still be frustratingly late with their payments. Over 70% of freelancers have trouble getting paid at some point in their careers, according to research by the Freelancers Union, the nonprofit group that promotes the interests of independent workers. “When you’re on your own freelancing for a big company, there is a fundamental power imbalance,” says Caitlin Pearce, director of advocacy and member engagement there. So if your paycheck doesn’t arrive on time, “You think, ‘What did I do wrong?’” Here are some strategies to help you run the, ahem, “billing department” of your freelance business.
Do your homework
The best way to ensure you get paid in a timely manner is to work only for reputable, well-funded companies that treat freelancers with dignity and respect. This requires due diligence, Younger says. “Before you respond to a request or knock on a door in a marketing capacity, you need to establish that the company can pay you and will pay you,” he says. “You need to find out if they’re honorable, scrupulous folks, or if they’re the kind of folks who will invariably find a ‘problem’ with your invoice.” Pearce recommends talking to other freelancers who’ve worked for the organization about their experiences. Inquire with the company’s full-time workers, too. “Ask about the corporate culture,” she says. “ How it treats employees is a good indicator of how it treats freelancers.” The bottom line: Don’t work with clients who have a bad reputation.
Next, you need to consider how you will bill your clients. There are many ways to go about it, and “there are pros and cons for each,” Younger says. Choosing to be a “truly independent worker” and handling all the invoices on your own requires more bookkeeping — and potentially more headaches — but all profits go to you. (Thankfully, there are numerous tools and apps that automate the process, including And.co, 17 hats, and justtelljulie.) On the other hand, being part of an “online talent platform that connects buyers and sellers” — such as Jobbatical, Business Talent Group, Upwork, or Toptal (where Younger is an adviser) — means less legwork and less paperwork because “they collect the money for you”; however, these platforms also take a cut of your earnings. Regardless of what you choose, it’s smart to seek out the advice of an accountant from time to time, Pearce says. “Most freelancers do not use accountants for bookkeeping” but instead as “periodic consultants.” They “help you prepare taxes, make sure your costs are under control, and ensure your business is structured properly.”
Get it in writing
Before you start working on an assignment, you need a contract that lays out the scope of the project, the payment terms, and the expectations for both sides. “Don’t believe in a handshake,” Younger says. Informal agreements are the source of almost every payment problem, so be sure “to get everything in writing.” For small projects an email chain will often suffice, but for longer engagements “it is worth working with a lawyer,” Pearce says. Most freelancers have a standard template contract that they alter for different clients. “When you can, work with your own contract,” she says. “You know what’s in it, and it has terms you can live with and negotiate from.” The Freelancers Union has several templates on its website, as well as an app that connects freelancers with attorneys who represent independent workers.
Understand your client’s payment cycle
It’s also important to talk with your client about its “payment schedules and policies in advance” of starting any work, Younger says. Find out how its fiscal year runs, how long it typically takes to process invoices, which days of the week it cuts checks, and how it pays its contract workers. This information helps you better manage your monthly cash flow. Pearce recommends you “try to get as much money up front” as possible. “A deposit of 30%–50% of your estimated fee is acceptable in many industries,” she says. Another tip: “Make sure you have the name and contact details of the person in finance with whom you’ll be dealing with,” Pearce says. This way, if there are delays, you have someone to call.
Invoice early and often
Regardless of your client’s payment terms, Younger recommends establishing your own billing cycle that’s frequent and predictable. “Bill on a weekly basis or every time you finish a bit of work,” he says. Billing often is “a signal that you consider your time valuable.” For longer-term projects, Pearce suggests invoicing at predetermined “milestones along the way” so that you are guaranteed “payment at certain points over time.” Milestone payments not only help you manage your cash flow, they are “also a tool for communication,” she says. “They make sure you and your client are both aligned and satisfied.” Whatever you do, don’t agree to terms that involve your getting paid only upon the full delivery of the work. “You don’t want to work for three months on a project only to have the client say, ‘I hate it. And I will only pay you for 50%.’”
Establish your professionalism
Earning your living as a freelancer requires that you “treat yourself like a business,” Pearce says. Don’t do slapdash work, don’t “forget” to invoice, and don’t be careless in your communications. “Getting paid is contingent on the quality of your work and the quality of your relationship with your client,” Younger says. “If you’re mailing it in, difficult to reach, or hard to deal with, that will affect your ability to make money.” On a related note, don’t work for free. “A lot of companies are fishing around these days for free work on the assumption that your working for them will help you more than it realistically will,” he says. Remember this any time you’re “invited” to give a free webinar or moderate a panel gratis. “Talk plainly and in businesslike terms” about your fee. “Establish the value of your work.”
If your client is ever late with a payment, “you have to be vigilant about following up,” Pearce says. “If you’re vigilant on your end, it sets expectations on theirs.” If you’re following up and no one is responsive, “escalate to a phone call or go to the office in person,” she says. It’s much easier to ignore an email than it is to ignore a human. Be persistent about seeking payment, Younger advises. “Don’t walk away, and don’t give up,” he says. “Work your way up the food chain and take it to the top” of the executive leadership if you need to. Your emails and calls about late or missing payments serve as documentation of your efforts to be paid. Use that paper trail to ask, “What’s the deal?”
Hire a lawyer
If you’ve tried everything and the client is still not paying, it might make sense to engage an attorney. It’s not a straightforward decision, however. “Mostly it’s a cost-benefit analysis” that involves calculating the amount that’s owed you, your odds of success, and the hassle of hiring — and paying for — a lawyer, Pearce says. A new, first-of-its-kind law in New York City gives freelancers a ray of hope. The law stipulates that for jobs paying $800 or more, freelancers must be paid either by a specified date or within 30 days of completion. The other big component of the law provides recourse for instances in which clients fail to pay. “If it goes to court, the law mandates double damages and attorney fees be awarded if the judge rules in the freelancer’s favor,” Pearce says. She adds that the Freelancers Union is “working on getting the law passed nationally.” At the very least, report your former client to the Better Business Bureau.
Principles to Remember
Your research. Find out how well-funded your client is and, to the extent possible, check if there are any financial red flags.
Bill on a regular basis, and for longer projects ask for milestone payments; they help you manage your cash flow and ensure you and the client are aligned.
Consider pursuing a settlement in court if your client fails to pay you.
Work informally. You need a good contract that lays out the scope of the project and the payment terms and ensures that expectations are clear on both sides.
Be late or inconsistent with your invoices. Make use of tools and apps that automate the process.
Be lackadaisical about following up with your client about a late payment. If the client does not respond to emails, visit the office in person if possible.
Case Study #1: Be vigilant about following up and seek legal advice when needed
Michael Lopez, a freelance copywriter specializing in the health and wellness sector, knows all too well what it’s like to get stiffed by a client.
Last year he agreed to do web copy overhaul for a drug rehabilitation company that had a network of treatment centers. He had done small jobs for this client in the past, but the new assignment was much bigger. This project was slated to last two months, and it represented “a good chunk of change” for Michael.
He finished the job and submitted an invoice. He didn’t hear back from the company, so a week later he followed up with an email. No response. After two weeks, he followed up by phone. Still no response. “After four weeks I followed up with another call and email and was told that they were working on payment and reviewing the work,” Michael says. “[They also told me] that they didn’t feel they would use the deliverables, so they were not sure if a full payment was fair.”
He was surprised, angry, and annoyed. “I went through all the stages of grief,” he says. “I eventually ended up feeling sad and disappointed in myself. Yes, they were in the wrong, but there were a lot of things I did wrong as well.” For one, he worked without a contract. “A contract was something that I knew I needed, but I hadn’t been able to put one together,” he says.
Fortunately for Michael, his roommate was an attorney. “I’ve always been aware that, in the absence of a contract, an email chain laying out when deliverables and payments are due is enough to prove in court — if you need to go that route — that you are owed funds.” His lawyer roommate sent a letter to his client that “essentially demanded they pay or suffer other legal action,” Michael recalls.
One week later, the client issued an apology to Michael and released funds for payment. “I don’t think it was worth fighting for them,” he says. It was a relief. Not long after that, Michael availed himself of the tools from the Freelancers Union and Legal Zoom to create a template contract for his future assignments. He describes what happened with the drug rehab company as a “harsh” learning experience.
“I’ve since updated my contracts, and I have a strict payment policy in place now,” he says. “If a client doesn’t want to adhere to it, then I almost never work with them. It’s part of qualifying high-quality clients.”
Case Study #2: Understand your client’s accounts payable process and use it to your advantage
Over the course of her 12-year career as an independent event planner, Vicky Choy says, she has always been paid for her services — but not always on time.
She recalls: “While working for one of my first corporate client, I learned that the accounting department only cut checks once every other week, and only on Thursdays. I would wonder why I wasn’t receiving payments on time. So finally, I asked. If I had sent an invoice on a Friday after accounting had just cut checks the day before, I would have to wait two weeks for them to cut checks again.”
It’s been an education, and over time she’s mastered the process. Vicky has a standard contract that she developed with the help of an attorney. She makes adjustments and alterations depending on the client and the event. The contract lists the project milestone schedule, the payment due dates, and the payment terms. In addition, the contract contains a “stop work” clause that gives her the right to stop performing work for a client until all payments are up to date.
Her early experiences with late clients also prompted Vicky to start using QuickBooks, which enables her to receive payments through e-checks and credit cards and has resulted in on-time payments.
“I like it because it keeps all my accounting in one place, and I don’t need to use different software for the same process,” she says. “As a micro-business owner, the more time I can save doing overhead work, the better.”
TGS: Q4-17 Financial Results and 2018 Guidance
TGS will release its Q4 2017 financial results along with 2018 guidance at approximately 07:00 CET on 8 February 2018. CEO Kristian Johansen and CFO Sven Børre Larsen will present the results at 09:00 CET at the Felix Konferansesenter, Bryggetorget 3, Oslo, Norway. The presentation is open to the public and can be followed live at www.tgs.com or directly from the webcast.
The slides from the presentation will also be available in PDF format at both the TGS and Oslo Stock Exchange websites.
CEO Kristian Johansen and CFO Sven Børre Larsen will host a conference call on 8 February 2018 at 15:00 CET (09:00 ET). Attendees may want to call 5-10 minutes before to ensure registration and access.
Norwegian attendees are invited to call 800 57933 or +47 2100 2610
International attendees are invited to call 0800 358 6377 or +44 (0)330 336 9105
US attendees are invited to call 888-394-8218 or +1 323-794-2149
Participants will need to quote the following confirmation code when dialing into the conference: 6755927.
A Q&A session will follow a short introduction, based upon the presentation issued in the morning. To pose a question, please press *1.
A replay of the conference call will be available shortly after. To access replay of the TGS conference call, dial:
+47 23 50 00 77 or + 800 196 72 (Norway)
+44 (0) 207 660 0134 or + 0 808 101 1153 (International)
+1 719-457-0820 or + 888-203-1112 (US)
Replay access code 6755927 followed by # (pound-sign)