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SAP’s integrated solution for oil and gas
The world’s continued demand for reliable, affordable, and sustainable access to energy is transforming the oil and gas industry into a more diverse and integrated energy landscape. The lines between adjacent industries are blurring as companies transform themselves and become more broadly integrated and/or networked into the entire value chain to effectively compete in this new reality for energy. From this reality, an unprecedented need has risen for an energy platform that networks the entire energy ecosystem.
With 40 years of delivering value to the oil and gas industry, SAP offers a complete oil and gas suite – all under a single, resilient system to meet new development and operating challenges.
The SAP single, integrated, real-time energy platform provides a comprehensive, end-to-end solution that:
• Drives integrated portfolio planning and project execution,
supported by an effective supply base
• Manages the convergence of production, maintenance, engineering, and financials at all enterprise levels
• Increases visibility into the hydrocarbon supply chain and downstream operations
• Integrates enterprise operations with standardized EHS and a risk management system
We believe our strategy and solutions will provide the enabling platform to support Oil and Gas companies’ business transformation objectives.
Industry value map for oil and gas
Why SAP?
Project orchestration
• Capital planning
• Portfolio and project
management
• Shutdown, turnaround and
outages
• Project logistics
Hydrocarbon production
• Hydrocarbon production management
• Hydrocarbon revenue management
• Field logistics
Hydrocarbon logistics
• Hydrocarbon supply and distribution
•
Operational integrity
Risk analysis and governance
Workforce competency Asset management Environmental, health, and safety
• Hydrocarbon processing visibility • • Commercial sales and •
marketing
• Secondary distribution and
fuels retailing
• Convenience retailing
•
Corporate functions > Human resources | Finance | Procurement
Platform and technology > Enterprise technology | Analytics | Mobile | In-memory technology
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SAP innovations for oil and gas
The SAP portfolio is based on the industry’s most innovative technology foundation and is aligned with the top oil and gas imperatives.
Why SAP?
Capital and spend effectiveness
Return on capital employed
• SAP Asset Intelligence Network: Collect, track, and trace equipment in a central, cloud-based repository
• AribaNetwork:Facilitateelectronicinterenterprise collaboration between trading partners
• Capitalportfoliomanagement:Facilitatefinancialand capacity planning, including decision making support and functionality to monitor portfolios
• Capitalprojectmanagement:Enhancevisibilityinto planned and actual costs and commitments for all projects in the portfolio
Hydrocarbon supply chain
Profitability
• Commodity management: Achieve a consolidated, real- time view of physical and paper commodity positions
• Oil and gas secondary distribution: Distribute fuel products faster and more profitably
• Commercialsalesandretailing:Delivermoresalesat convenience stores and for oil field services
Integrated digital oil field operations
Return on assets
• Upstream production operations by Accenture and SAP: Maximize return on production assets and achieve measurable performance results for hydrocarbon and revenue accounting
• Upstreamoperationsmanagement:Integrateproduction, maintenance, engineering, and planning, thus enabling a holistic view of assets and performance
• Productionrevenueaccounting:Streamlineallrevenue processes related to hydrocarbon production
Operational integrity
Safety and regulation
• Predictive maintenance: Optimize maintenance processes and enhance operational engineering
• SAP Work Manager: Increase field, platform, plant, pipeline, and fleet performance; improve safety and reduce overtime and cost of maintenance
• Workforce competency: Help ensure workers have the skills they need with a flexible training solution that runs tailored programs
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SAP supports the entire Oil and Gas value chain
Almost half a century
Based on 40+ years in the Oil and Gas industry, SAP has built a solid reputation for solution delivery and working with the industry to solve emerging business issues. Some of the customers we have worked with are:
National Oil Companies
Integrated Majors
Exploration & Production Midstream & Refining Downstream & Retailing
Oil Field Services
SAP footprint in the Oil & Gas industry
The industry repeatedly chooses SAP as their strategic partner
Why SAP?
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The value of partnering with SAP
SAP brings a strategic partnership with an unparalleled amount of experience and strong track record in the oil and gas industry to assist Oil and Gas companies on its business and IT transformation journey. Whether a customer needs solutions in applications, cloud, mobile, analytics, or database and technology areas, SAP can partner and deliver.
Why SAP?
Communicating and actively working with the oil and gas industry
SAP’s O&G Global Industry Advisory Council is co-led with the SAP Global Industry Business Unit and is comprised of 26 leading companies that meet monthly to discuss strategic initiatives, projects, conferences, technology advancements, and other topics. This council has been in place for over 40 years and continues to support key industry topics to deliver business value.
Actively managing communities of practice with our customers
SAP’s Oil and Gas industry communities engage customers in topics of research, innovation, and education, and foster discussion to define, develop, test, and promote solutions. Customers co-lead these communities and create the agenda for meetings as well as initiatives to define new solutions that are needed as technology changes. Oil and Gas companies is invited to join work streams in the communities of practice.
SAP co-manages work streams with customers in the areas of:
• Capital and spend effectiveness: Direct and indirect procurement, leveraging Ariba Network combined with SAP finance and procurement solutions
• Integrated digital oil field operations: Production revenue accounting and upstream operations management, including the Upstream Production Operations by Accenture and SAP program and an SAP solution to address this market segment
• Hydrocarbon supply chain: Development of refining and petrochemical extensions to enhance integration with SAP and other industry products
• Operational integrity: Integrity management, shutdown, and turnaround with additional work streams such as workforce competency and asset information integration
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“We needed a partner for future solutions and trusted collaboration, and we found it in SAP. Today, we have given ourselves a technology and operating foundation that can take us forward.”
Ali A. Al-Hazmi, President, Saudi Aramco Shell Refinery Company
Unit-level
Product
profitability, visibility and control in real time
Improved
On-time payment to suppliers
100%
Real-time tracking of inventory movements and expenses for projects
What some of our customers are saying
Intelligent Facilities
Why SAP?
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“We are focused on continuing our remarkable growth story, and to achieve this, we decided to transform our approach to business management and look for ways to enable the comprehensive operational insight that we desired.”
- Mike McCormick, CIO, Vivo Energy
Transforms
Vivo Energy’s ability to launch new initiatives, slashing time-to-value
Boosts
data analysis capabilities, giving granular insight into operations
Drives
automation, boosting efficiency and freeing
employees to spend more time on value-add tasks
What some of our customers are saying
Intelligent Facilities
Why SAP?
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“SAP Upstream Operations Management provides us with a unified platform and simplified IT landscape. We have full transparency and holistic insight into our production operations – and improved data integrity.”
- Sevda Javadova, SOCAR ITRI, Lead UOM team, State Oil Company of Azerbaijan Republic
5 minutes
To calculate the production
Reliable
Data capture and processing
Up to 36x
Faster reporting
What some of our customers are saying
Intelligent Assets
Why SAP?
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Prevent long term outages by detecting
needed maintenance early
Increased
visibility to the state of the pipes as well as needed spare parts
Increase in overall asset availability
Predictive Asset Analytics using IoT
Endress+Hauser was looking for a solution for their Process Industry customers in order to gain
more insights into their flowmeters. They wanted to be able to alert their customers and give them the necessary amount of time to react to flowmeter issues.
What some of our customers are saying
Intelligent Assets
Why SAP?
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Created multiple “personas” of the connected worker,
used to customize tools to an employee’s role, helping to ensure that workers are properly trained and have access to the right information at the right time, boosting their confidence to operate in the field.
20% more efficient for fieldworkers
Use digital technology as an enabler
Replace resources and capital with data to sustain competitive advantage
What some of our customers are saying
Empowered People
Why SAP?
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Next steps


Start the journey toward a more intelligent enterprise Outlined below are the 5 components of the SAP digital transformation methodology and governance framework.
1. Strategy alignment: Understand SAP and Oil and Gas companies’ strategic direction and identify initiatives
SAP proposes a four step approach as part of this framework to work collaboratively with Oil and Gas companies to build the digital enterprise strategy and roadmap.
Next Steps
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Next Steps
Over-achieving Oil and Gas companies’ vision requires significant focus and executive commitment along with a business partnership with SAP to drive a successful outcome. SAP brings unparalleled experience and a strong track record that will help ENGEN run and grow their business more effectively for years to come.
SAP recommends the following post the SDM and RFNO deep-dive workshops:
§ Seek approval to purchase and implement the following SAP
solutions
1. S/4HANA O&G for SDM with OptEngine
2. S/4HANA O&G for RFNO
3. S/4HANA Model Company for Retail (including CAR)
(1 and 2 minimum SAP OGSD recommendation)
§ Engage with Implico as the approved implementation partner of SDM and RFNO
§ Engage with SAP Executives to align on strategy and support
§ Immediately work with your current SI to weave these requirements
into Project SPICE
SAP is committed to enabling successful transformation programs for ENGEN.
“This is the first implementation of a B2B solution in the country to automate crude oil procurement between upstream and downstream oil companies using electronic data interchange. The solution helps ensure accuracy and transparency for both Numaligarh Refinery Limited and Oil India Limited.”
Nilmoni Bhakta, Director, Finance, Numaligarh Refinery Limited
Next steps
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