Audit-defence files
For every commitment, a defensible position backed by evidence: what was spent, under which contractual entitlement, and why it is recoverable under the regime. Complete before the auditors arrive.
Step 6 · Cost Recovery
How much of what you spent will the cost recovery mechanism allow you to offset against revenues?
The spend is history. The recovery is not - it is decided later, on paper, by people reading a file your organisation may not have kept.
The diagnosis
Recovery is decided by the file, not by the spend. A cost that was legitimately incurred but cannot be evidenced is, for recovery purposes, a cost that was never incurred. And recovery work usually starts a year late - after the project team has dispersed, the contractors have demobilised, and the people who could explain each commitment have left.
The scale is not marginal. On $1bn of capex, the difference between recovering 90% and 98% is $80M - decided not in the field, but in the file.
There are 4 main leakage points: disallowed cost, time leakage & inflation, gold plated specs and efficiency failure and non-recoverable operational realities.
What you receive
A file that decides in your favour, fair and square
Recovery readiness
The portfolio's recovery position known in advance: which costs are secure, which are exposed, and what the exposure is worth - while there is still time to close the gaps.
The negotiation position
Where challenge comes - from the regulator, the NOC or the JV partners - a prepared position that separates fair challenge from value leakage, item by item.
Delivered as defined outputs and results driven. We also support governments that are new to cost recovery processes, as they issue exploration and production projects. For them we establish and train the processes and teams. Our AI can support them.
The deep dive
Cost recovery is also a standing practice in its own right - for governments and NOCs preparing the challenge as well as for operators preparing the defence. Both sides of the same coin, held to the same evidence standard.
Position in the chain
Step 6 of seven
Previous · Step 5 - Commercial Assurance
The discipline that keeps the file whole while the spend is happening - so recovery does not start from reconstruction.
The service →Next · Step 7 - Contract Close-out & Evaluation
What the recovery process learned about the contract, written down before it is forgotten.
The service →The whole chain: seven services, one chain of activities.
Further reading: cost recovery leakage points and audit readiness
See your recovery position before the auditors do
A demonstration walks a live commitment through The Workbench - entitlement, evidence and recovery position, traceable end to end.
See it working - book a demonstration