Ecopetrol Makes Progressive Use of Cloud Procurement Services Powered by SAP SoftwareMay 11, 2010
Ecopetrol has used the SAP E-Sourcing application, provided as a service by Hubwoo, to sell natural gas in addition to its historical use of Hubwoo services for sourcing; Ecopetrol ran forward auctions that sold $368 million of natural gas, increasing sales price by 81 percent over the auction start price.
Paris – 11th May 2010 – Hubwoo (Euronext: HBW.NX), the world’s leading provider of Cloud Procurement services powered by SAP® software, today announced additional success by its client Ecopetrol through the use of the SAP® E-Sourcing application, Today’s announcement will also be publicized at the SAPPHIRE® NOW customer conference and networking event, being held simultaneously in Orlando and Frankfurt, May 17-19.
Ecopetrol is a global energy and petrochemical company and is the largest corporation in Colombia, South America. At the end of December 2009, Ecopetrol launched Colombia’s first use of electronic forward auctions to sell natural gas. The sale was for natural gas from the fields of Cuisiana, which supply most of the country-side markets of Colombia. The price was driven by strong demand by energy generators like lsagén and oil companies like Mansarovar and Petrobras. Ecopetrol is planning additional iterations of this commercially savvy forward auction approach, and the model is now being planned by other energy firms in the region.
- During the auction the gas selling price went up from 3.4 U.S. dollars per million BTU to 6.14 U.S. dollars per million BTU.
- The event had a total of 14 auction rounds and lasted approximately six hours.
- The auctions were run in a fashion that followed government regulations..