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The Full Upstream Production and Revenue Visibility for National

Oil Companies and Hosting Countries Governments


An SAP Investment via Africa Growth Plan Initiative
Pedro Guerreiro, Head Energy & Natural Resources for Africa
September 2015

Proposed Activities
1.

2.

Business Process Modelling (BPM)


5 Week exercise with a customer
Output End to End Upstream Production Operations BPM
Asset / Collateral Used Upstream Operations
Management (UOM) BPM + Integrated Digital Oilfield Ops
(IDOO) Content
Software and Services Solution Mapping
Solution Mapping to Business capability requirement
Service Offerings (Road MAP, Value assessment etc.)

3.

Identify Co-Innovation / Co-Engineering Opportunities


(based on the gaps: Potential CD topics / Product Road
Map)

AFRICA Specific Growth Plan Initiative


Provide an upstream package that will support
AFRICA customers have a view with complete
transparency on the Production, Joint Ventures
Operations and Revenue.
Provide capability to monitor operational costs from
Well head up to revenue to analyse production
profitability.

Demo & POC build (Subject to the scope)


Leverage UOM POC and IDOO Day in the life Scenario

2015 SAP SE or an SAP affiliate company. All rights Based


reserved.
on TOGAF 9 materials licensed from The Open Group Copyright 2009

Internal

Production Operations focus and Scope

Exploration &
Reservoir Mgmt.

Drilling & Development

01 Year

02 years

Long term portfolio planning


3D/4D seismic Geological Model
Core data for Geostatistical Model
Well logs
PVT data
Well testing and pressure buildup
Reservoir Modeling
Enhanced oil recovery programs

Site management (Right of Way)


Wired drill pipe
LWD/MWD
Rotating equipment
EHS compliance
Hazardous material disposal
Field development
Inventory management
Procurement
Project management

Production

20 years

Well Design
Economic analyses
Facility planning and mgmt.
Production allocation & surveillance
Production planning and mgmt.
Well and field services
Energy mgmt.
Operational excellence

Dispose & Abandon

06 Months

Environmental certifications
Asset disposal planning
Plug and Abandon activities
Remedial work & site restoration
Project execution and monitoring
Logistics (People, Stores & Spares)

Integrity & reliability


Logistics and contract mgmt.
Hydrocarbon logistics and storage
Venture financial mgmt.

Generally, the digital Oilfield encompasses both the tools and the processes surrounding data and information management across the entire lifecycle of upstream activities
2015 SAP SE or an SAP affiliate company. All rights reserved.

Internal

Scope - Process Scope


Approach: Identify Data and parameters for NOC visibility and business monitoring, then look into end to End
processes to secure goals including upstream data and JV accounting

Well Design

Economic analyses

Facility planning and mgmt.

Production allocation & surveillance

Production planning and mgmt.

Well and field services

Energy mgmt.

Operational excellence

Integrity & reliability

Logistics and contract mgmt.

5 Week exercise with a strategic customer

Hydrocarbon logistics and storage

Output End to End Upstream Production Operations BPM

Venture financial mgmt.

Asset / Collateral Used UOM BPM + IDOO Content

1. Production allocation & surveillance


2. Production planning and management
3. Venture financial mgmt.

Generally, the digital Oilfield encompasses both the tools and the processes surrounding data and information management across the entire lifecycle of upstream activities
2015 SAP SE or an SAP affiliate company. All rights reserved.

Internal

End-to EndProcess/ Process


Area (Level 1)

Scope End-to-End Process, Process Areas & Process Groups

1.
Upstream Operations Management

Process Groups
(Level 2)

Production Manager

Production Operations
Engineer
Production Engineer

Asset Manager

EHS Manager

Finance Manager

1.1
Gather Data

2015 SAP SE or an SAP affiliate company. All rights reserved.

1.2
Analyze Data

1.3
Decide on Actions

1.4
Implement Actions

Internal

POAP > Plan on a Page 2015

Planning &
Resourcing

02 PD

Business Process Modelling

Planning & Resourcing


Business Process Modelling
Software and Services Solution Mapping
Demo & POC build (Subject to the scope)

02
65
02
120

TOTAL ~ 190 PD

4 Week
04 SAP resources
65 PD

02 PD

Software & Services


Solution Mapping

Demo & Proof of Concept

* Dates to be reviewed, however initiative to be complete before end of 1st week of December as SAP investment funds for initiative will be available only in 2015.
** As a disclaimer, while SAP strongly believes in the merits of this initiative for Africa NOCs, and intends to execute this investment, SAP is not obliged to execute investment herein proposed
2015 SAP SE or an SAP affiliate company. All rights reserved.

Internal

Storyboard
A field produces primarily gas, with some water production. The gas field makes extensive use of compressors due to the
low pressure gas being produced. There are more than 1000 producing wells on this field.

In a certain year gas production seems normal.

In the next year, the Production Manager notices that monthly gas production is falling below plan. Investigation also
reveals that failure rates for compressors have increased. Deeper investigation reveals a root cause as fuel filter
failures.

A new maintenance program is designed to replace the worst performing filters more frequently.

Effect of well outage on production plan Simulated, assessed and a new Production plan is updated

Maintenance Plan is executed This also intimates Procurement and MOC activities

Maintenance Executed and completed

An incident is reported and managed whilst maintenance was being performed

All costs associated to the program are captured and allocated to JV partners

Company Execs are able to see / measure the positive Impacts of the program in due course
Note: This scenario represents activities across the value chain. The scope of the initiative will be on the National Oil Companies role and impact related to
this scenario, i.e., will be limited Production Operation and Venture cost Management.
2015 SAP SE or an SAP affiliate company. All rights reserved.

Internal

End-to-End Storyboard (NOCs and Operators)


Act 1
Production
Loss

Maintenance
Program

Production Manager

Maintenance Manager

James Boon

Thomas Reed

1.

Production Analysis Report

2.

Production loss Identified

3.

4.

Investigation and Root Cause


Analysis
Issues reported to
Management

Act 3

Act 2

1. GM

Commissions a revised /
new maintenance program

2. Task

force created to
implement the program

3. Maintenance
4. Impact

Plan Updated

on production is
evaluated

Act 4

Production
Well Outage

Management
of Change

Maintenance Planner

Change Coordinator

Act 6

Act 5
Perform
Maintenance
Maintenance Planner

Material
Procurement
Procurement Officer

Aaron Kane

Albert Roland

Production Accountant

Maintenance Technician

Warehouse Manager

Julia Nash

Roy Cooper

Ben Knight

Aaron Kane

1. Impacted

well identified

2. Down town estimated

Gale Wills

1. Change

request for revised


frequency of fuel filter
replacement is initiated

3. Production

2. CR

4. Production

3. Maintenance

Simulation based
on planed well downtime
Planning to
calculate production at end
points and/or sale points

goes through approval


process
commences

Work

4. CR

closed once Maintenance


work is completed &
reviewed

1. Maintenance

Notification and
Work Order Creation

2. Material

Inventory Checked

1. Resources

Planed and Work


Permits issued (WCM)

2. Maintenance

performed

3. Incident

reported during
Maintenance

4. Work

Order closed out

1. Daily MRP

run generates
external Procurement
requirement for Fuel Filters

2. Requirements

are transferred
to SRM for external
Procurement

Act 7
Cost Allocated
to JV Partners
Operations Accountant
Paula Smith

1. Costs

are allocated

Act 8
Analysis Impact
& Results
Production Manager
James Boon

1. Production

Analysis Report

2. Cutback
3. JV Billing

3. Tendering

process begins and


contract with the Vendor
established

4. Purchase

Order released

5. Fuel

Filter supplied and


received in inventory

SAP HANA

SAP PM

SAP UOM

SAP Business Objects

SAP EHS (MOC)

SAP PM

SAP MM

SAP FI

SAP HANA

SAP PM / ORM (WCM)

SAP SRM / ARIBA

SAP JVA

SAP Business Objects

SAP EHS (Incident

Management)

SAP SYCLO
SAP Visual Enterprise

Note: This scenario represents activities across the value chain. The scope of the initiative will be on the National Oil Companies role and impact related to this scenario, i.e., will be
limited Production Operation and Venture cost Management.
2015 SAP SE or an SAP affiliate company. All rights reserved.

Internal

Demo Scope
Focus on National Oil Companies view and process impact
Act 1
Production
Loss

Maintenance
Program

Production Manager

Maintenance Manager

James Boon

Thomas Reed

1.

Production Analysis Report

2.

Production loss Identified

3.

4.

Investigation and Root Cause


Analysis
Issues reported to
Management

Act 3

Act 2

1. GM

Commissions a revised /
new maintenance program

2. Task

force created to
implement the program

3. Maintenance
4. Impact

Plan Updated

on production is
evaluated

Act 4

Production
Well Outage

Management
of Change

Maintenance Planner

Change Coordinator

Act 6

Act 5
Perform
Maintenance
Maintenance Planner

Material
Procurement
Procurement Officer

Aaron Kane

Albert Roland

Production Accountant

Maintenance Technician

Warehouse Manager

Julia Nash

Roy Cooper

Ben Knight

Aaron Kane

1. Impacted

well identified

2. Down town estimated

Simulation based
on planed well downtime

Gale Wills

1. Change

request for revised


frequency of fuel filter
replacement is initiated

3. Production

2. CR

4. Production

3. Maintenance

Planning to
calculate production at end
points and/or sale points

goes through approval


process
commences

Work

4. CR

closed once Maintenance


work is completed &
reviewed

1. Maintenance

Notification and
Work Order Creation

2. Material

Inventory Checked

1. Resources

Planed and Work


Permits issued (WCM)

2. Maintenance

performed

3. Incident

reported during
Maintenance

4. Work

Order closed out

1. Daily MRP

run generates
external Procurement
requirement for Fuel Filters

2. Requirements

are transferred
to SRM for external
Procurement

Act 7
Cost Allocated
to JV Partners
Operations Accountant
Paula Smith

1. Costs

are allocated

Act 8
Analysis Impact
& Results
Production Manager
James Boon

1. Production

Analysis Report

2. Cutback
3. JV Billing

3. Tendering

process begins and


contract with the Vendor
established

4. Purchase

Order released

5. Fuel

Filter supplied and


received in inventory

SAP HANA

SAP PM

SAP UOM

SAP Business Objects

SAP EHS (MOC)

SAP PM

SAP MM

SAP FI

SAP HANA

SAP PM / ORM (WCM)

SAP SRM / ARIBA

SAP JVA

SAP Business Objects

SAP EHS (Incident

Management)

SAP SYCLO
SAP Visual Enterprise

2015 SAP SE or an SAP affiliate company. All rights reserved.

Internal

Customer Effort Plan

* Dates to be reviewed, however initiative to be complete before end of 1st week of December as SAP investment funds for initiative will be available only in 2015.
2015 SAP SE or an SAP affiliate company. All rights reserved.

Internal

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