Singapore – Standard Chartered has been selected to provide a comprehensive cash management and trade guarantee solution for the Asian business of Schlumberger, the world’s largest oilfield services company. Under the mandate, Standard Chartered has become the primary cash management partner for Schlumberger in 13 markets (12 countries in Asia and Ghana).
With its expansion in a growing number of markets in Asia, Schlumberger was seeking ways to optimise its working capital management processes across Asia. Standard Chartered has developed a tailored centralised payments and regional liquidity management solution for Schlumberger by simplifying its banking structure, improving and standardising cash management practices across the region and optimising returns on trapped cash in restricted local markets.
Centralisation and automation are key features of the solution which uses SWIFT Fileact as delivery mechanism for industry standard ISO XML file for payments. Credit facilities supporting the cash management and trade guarantees are consolidated under the regional umbrella agreements, and cash management processes are integrated to support Schlumberger’s Shared Service Centre in Kuala Lumpur, Malaysia.
Commenting on the solution, Firas Fattal, Schlumberger Asia and Middle East Treasurer said:
“We have been very pleased overall with the Standard Chartered Bank implementation process for Asia, particularly around account opening and other technical aspects of the implementation. Standard Chartered Bank team furthermore demonstrated a proactive approach to future servicing as the implementation process nears completion. We consider Standard Chartered Bank as a core member of our banking group.”
Richard Jaggard, Regional Head of Transaction Banking Europe, Standard Chartered, said:
“In order to navigate the current volatile economic environment and maximise growth opportunities, good working capital management is crucial. While expanding into Asia, large multinational corporations often end up having a collection of disparate processes across different markets, which is costly and often results in operational inefficiency and increased risk. The key focus of our solution is complete central visibility and control of cash through our cross-border capabilities, enabling greater efficiency and improved yield on surplus cash balances. Furthermore, we assisted in streamlining regional guarantee issuance under an umbrella facility allowing for greater flexibility.”
Standard Chartered continues to grow its cash management services, with its deep local knowledge of emerging markets and strong network across Asia, Africa and the Middle East.