About

As a tier-one oil and gas company, this organisation serves customers on five continents and in 130 countries. With hundreds of bank relationships around world, driving efficiency is a priority for the business.

The challenge

Due to the global nature of the oil and gas company’s business and the extensive footprint of its treasury operations, liquidity inefficiencies and potential exposure to counterparty risk were significant challenges for the treasury team. Treasury was interested in centralising its U.S. dollar position in a single location wherever possible in order to gain visibility and control over cash worldwide. Such efforts would allow treasury to manage dollar funding globally, optimise yield on excess cash and ensure strict adherence to investment and counterparty risk policies.

The J.P. Morgan solution

• The company requested that J.P. Morgan replace the local entities’ in-country U.S. dollar accounts with dollar accounts in three regional hubs (North America, Europe, the Middle East and Africa, as well as in the Asia Pacific region). This regional consolidation then allowed balances to be swept to London.
• J.P. Morgan’s solution included a Follow-the-Sun sweep from APAC to London.
• The solution also involved an Against-the-Sun (ATS) sweep from North America to London, under provision of end-of-day treasury forecasts by the North America treasury team.
• As a result of the sweep solutions, treasury was able to actively invest excess cash in London.

J.P. Morgan is the marketing name for the Treasury Services business of JPMorgan Chase Bank, N.A. and its affiliates worldwide.

 The products and services described in this document are offered by JPMorgan Chase Bank, N.A. or its affiliates subject to applicable laws and regulations and service terms. Not all products and services are available in all locations. Eligibility for particular products and services will be determined by JPMorgan Chase Bank, N.A. or its affiliates. You should examine the specific restrictions and limitations of local law that may be applicable to your company when using the products and service described in this material. This presentation does not constitute a commitment by any JPMC entity to extend or arrange credit or to provide any other products or services and JPMorgan reserves the right to withdraw at any time. All services are subject to applicable laws, regulations, and applicable approvals and notifications. Please note: Virtual Account Management is under development and timelines are subject to change

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 J.P. Morgan, JPMorgan, JPMorgan Chase and Chase are marketing names for certain businesses of JPMorgan Chase & Co. and its subsidiaries worldwide (collectively, “JPMC”). Products or services may be marketed and/or provided by commercial banks such as JPMorgan Chase Bank, N.A., securities or other non-banking affiliates or other JPMC entities.  JPMC contact persons may be employees or officers of any of the foregoing entities and the terms  “J.P. Morgan”, “JPMorgan”,  “JPMorgan Chase” and “Chase”  if and as used herein include as applicable all such employees or officers and/or entities irrespective of marketing name(s) used.  Nothing in this presentation is a solicitation by JPMC of any product or service which would be unlawful under applicable laws or regulations. 

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