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SAP Oil & Gas, Raw Materials & Mining

Industry Business Unit

SAP Oil & Gas


IS-Oil Overview

Dr. Holger Kisker,


SAP Oil & Gas, Product Manager

SAP
SAP AG
AG 1998
1998, H.Kisker
H. Kisker 1
SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

IBU Oil & Gas, Raw Materials & Mining


Executive Board Member Dr. Peter Zencke

IBU Director Dieter Rafalsky

Dr. Holger Kisker Ralf Mller, Dr. Jrgen Pinkow, Dr. David Delvalle Peter Maier
Dr. Dieter Spielbauer Senior RIG
Product Quality
manager Development Manager
manager
managers Europe, Middle
East, Africa

Gerold Kaske
RIG Manager
Additional key functions: Special tasks:
Software Logistic Russia: Dr.Uwe Sodan North East
Info Development South America: Dr.Holger Kisker Asia
Translation China: Xiaoqun Clever Sally Nista
Secretary India: Annette Meyer Telma Gallo
Subcontractor Americas
R/2 IS-Oil

SAP AG 1998, H.Kisker 2


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

Road Map: Oil Industry


Industry Standard

Industry Leader Oil complementary


SW components
Today
Oil User Group
R/3 Oil
Market Entry Global availability
R/3 Oil Rollout

Release R/2 IS-Oil Beta R/3 IS-Oil


Downstream
Co-founders Oil Consortium
Oil Consortium (+ Chevron, Star,
(Elf, Petrofina, Exxon, Sunoco, Crown)
MOBIL, Shell, Texaco,
Release R/3 IS-Oil Upstream Intl.
AC, SAP) Downstream Industry Template
IS-Oil Launch ICOE
1983 ISO 9001 certification
IS-Oil Upstream Chevron
MOBIL R/3 Launch Release R/3 R/3 Release 3.0

First Customer: Global use by the Industry


Market Leader
MOBIL 10 out of 10 Top oil companies

SAP AG 1998, H.Kisker 3


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

Highlights `98
Market Scenario
400+ Installations
150+ IS-Oil Installatoins
Saudi Aramco

signed one of the largest deals in SAPs history


Amoco
14500 live R/3 users
36 billion USD on SAP Oil & Gas.
Shell
28 live sites, 50 + projects
Largest European refinery. SHELL Pernis. Live Jan 98.

Service Station Retailing: Statoil


First SAP Oil & Gas Implementation in Russian: Lukoil
Available in English, German, French,
Spanish, Russian, Japanese
(99: Portuguese, Italian, Korean)
SAP AG 1998, H.Kisker 4
SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

SAP and the Oil and Gas Industry

Upstream Downstream
Exploration

Marketing
Production

Refining
ARAL

Amoco, Amerada Hess, Agip, Amerada Hess,


Barrington Petroleum, BHP Amoco, Ampol, Aral,
Petroleum, BP Exploration, Aramco, Caltex, Cepsa,
Chevron, Conoco, Exxon, Chevron, Conoco, Crown,
Husky Oil, Hydro Data, Elf, Engen, Exxon,
Mobil North Sea, Norsk Farmland, IOL, Mobil, MOL,
Hydro, Repsol, Phillips PDVSA, Petro-Canada,
Petroleum, RWE-Deminex, Petrofina, Petromidia,
Saga Petroleum, Shell, Petronas, Repsol, Shell,
Statoil, Texaco, Total Star, Statoil, Sunoco,
Marine Texaco, Total, Veba

Veba Oel

SAP AG 1998, H.Kisker 5


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

IS-Oil Downstream Scalability


Amoco
Sales: U.S.$ 42 billion, 45,000 employees > $30
P1: FI, AM, CO, PS, MM, SD P2: IS-Oil billion
5,000 current users (growing to 22,000)

Star Enterprise
Sales: $ 8 billion, 4,000 employees >$5
P1: FI, AM, CO, MM, PM, PS P2: SD, IS-Oil billion
450 current users (growing to 1,100)

Shell Austria
Sales: $ 1.4 billion, 400 employees >$1
FI, AM, CO, MM, SD, PP, HR, IS-Oil billion
350 users

Haltermann <$1
Sales: $ 600 million, 200 employees billion
FI, AM, CO, MM, SD, IS-Oil
100 users

SAP AG 1998, H.Kisker 6


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

Components of the Add-On Component


IS-Oil

SAP AG 1998, H.Kisker 7


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit
Key Downstream Business Processes
Acquire/ Store/
Transport Manufacture Market
SAP Trade Distribute
Core

IS-
Oil

MCOE Marketing, Contracts and Order Entry

SAP AG 1998, H.Kisker 8


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

Overview IS-Oil sales order entry


Fast order entry screen
Defaulting sales area
Contract quantity Last order proposal
correction on final delivery Automatic supply plant
Purchase order required determination
New flag in delivery functionality for customer
includes ASTM conversion Preferred plant
4 alternative plants

Call-off restricted to contract


Configure as warning,
Item category
information or error message
Restrict products
MCOE redetermination
Restrict Unit of Measure
Marketing, Contracts and Used for consignments
Order Entry
Restrict payment terms
Restrict quantity
Restrict validity dates
Restrict ship-to
Multiple ship-to in contracts
Define alternative ship-to
Customer master New information fields in partners for a contract
enhancement delivery documents Allow restriction of ship-to
Ship-to/sold-to online check External bill of lading partners in call-offs
Report ship-to/sold-to Miscell. delivery number
relationships Truck number
Alternate origin &
destination

SAP AG 1998, H.Kisker 9


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit
Key Downstream Business Processes
Acquire/ Store/
Transport Manufacture Market
Trade Distribute
SAP
Core

IS-
Oil

MCOE Marketing, Contracts and Order Entry

HPM Hydrocarbon Product Management

EXG
TD

MAP

TDP

MRN

SAP AG 1998, H.Kisker 10


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

HPM Overview

Transport
Negative and
Inventory Distribution

Enhanced Physical
Reporting Inventory

Stock
Hydrocarbon Integration Inventory
of Petroleum
Product Standard
Material
Management conversion
calculations
Movements
into
the SAP R/3
System Deliveries
Tariffs
Duties
Permits
Two Step Pricing
Plant to Plant
Transfers
Invoices

SAP AG 1998, H.Kisker 11


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit
HPM - Requested Units of Measure
Unit of Measure Group

Liters 15 C ASTM / API


Liters 12 C Conversion
Kg
Barrels
.
.
Load in liters

Inventory
management

Reporting

Excise duty

SAP AG 1998, H.Kisker 12


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit
HPM - Common Interface for Quantity
Calculations

Transaction calculations
Desk top calculator
SAP AG 1998, H.Kisker 13
SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit
Key Downstream Business Processes
Acquire/ Store/
Transport Manufacture Market
Trade Distribute
SAP
Core

IS-
Oil

MCOE Marketing, Contracts and Order Entry

HPM Hydrocarbon Product Management

EXG Exchange Handling

SAP AG 1998, H.Kisker 14


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

Business scenario - basic exchange


Exchange Agreement

Purchase
Goods receipt
outline
agreement
Oil Co 2
Oil Co 1
Exchange
Partner

Sales outline
agreement
Physical goods flow
Goods issue
Order
Customer of
Delivery note
Oil Co 1
Invoice
Logical goods flow

SAP AG 1998, H.Kisker 15


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

Key Downstream Business Processes


Exchanges
Exchange agreement
M SD
M
Fees Purchase contract Sales contract Fees
Qty. sched. Qty. sched.

Purchase call-off Sales call-off


Qty. sched. Qty. sched.
Exchange balance
Delivery &
Goods receipt
goods issue
Logical inventory

LIA
Invoice receipt Billing

Payment Exchange statement Collection


processing Netting processing
FI FI
SAP AG 1998, H.Kisker 16
SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit
Key Downstream Business Processes
Acquire/ Store/
Transport Manufacture Market
SAP Trade Distribute
Core

IS-
Oil

MCOE Marketing, Contracts and Order Entry

HPM Hydrocarbon Product Management

EXG Exchange Handling

TD Tansportation Distribution

MAP

TDP

SAP AG 1998, H.Kisker 17


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit
Transportation and Distribution (TD)
Transportation R/3 MM + R/3 SD +
IS-Oil IS-Oil
and Distribution
Purchase order Sales order
processing processing
Integrated in
the process-
Shipping
oriented Delivery
notification
processing processing
supply chain
In-bound and
TD
out-bound
bulk product Bulk
scheduling
movements
Tracking of in-
Bulk
transit stock loading
Handling of in-
transit gains or Bulk
delivery
losses confirmation
Compatibility
checks
Goods Goods
receipt issue

SAP AG 1998, H.Kisker 18


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

Bulk Transportation Process Flow


Gathering
System

Producer Sales
Contract Bulk Contract
Supply Terminal
Pipeline
Transfers,
Purchase Sales
Contract Bulk and
Manufacturing Purchases
Plant
Exchange Bulk
Contract Terminal Retail
Outlet
Sales Pipeline Commercial
Contract batches Customers

Primary Secondary
Distribution Distribution

Acquisition of raw materials (1.0D) Ship Finished Product to customer (1.0C)


Inbound Shipments (1.0D) Outbound Shipments (1.0C)
Product Transfers (1.0D) Product Transfers (1.0C)
MRP II Integration (Later) Bulk Distribution Requirements Planning (BDRP) (1.0D)
Shipment Costing (1.0D) Shipment Costing (1.0D)

SAP AG 1998, H.Kisker 19


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

Master Data Enhancements I


Vehicle

Transport Unit Compartment

Driver

meter
n possible
n possible
n possible Trailers Compartments
movers

Road

Marine Rail Pipeline

SAP AG 1998, H.Kisker 20


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

TD Process Overview

Bulk del. In-transit


Multiple Compatibility Rebrands Unplanned Returns to
rqmts. stock
customers checks deliveries stock
planning handling

Deliveries/ Assign documents Load vehicle Record


shipping notifications/ to vehicles from schedules delivery of
reservations shipment
(Scheduling) (Loading confirmation) (Delivery confirmation)

Multiple
Bulk Exchange Gains & Excise
loading
products handling losses duty
plants

Delivery Reserv-
1 Delivery Reserv-
ation
1 ation

Shipp.
notif.

SAP AG 1998, H.Kisker 21


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

TD - Overview

Orders 1.Scheduling
Take orders from Assign Documents
Customer to Vehicles

3.Delivery 2. Loading
Confirmatio
n Load Vehicles
from Schedules
Record Delivery
of Shipment

SAP AG 1998, H.Kisker 22


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

TD - Scheduling

Shipment Route Product


Planning Planning
Customer
Compatibility
with Vehicle

Document
Selection Compartment
Planning

Driver
Selection
Vehicle
Selection Licence Availability
Requirements
Dispatch Availability
Optimiser

SAP AG 1998, H.Kisker 23


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

TD - Loading

Actual loaded Excise In-transit


Prior to
Qty or material Duty Inventory
load
by compartment
Quantities

Multiple plant & Printing of


vehicle loading Shipment
Documents

Balance Rack Meter ASTM / Rebranding /


Loadin Readings API Blending
g (BOM)

SAP AG 1998, H.Kisker 24


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit
Key Downstream Business Processes
Acquire/ Store/
Transport Manufacture Market
SAP Trade Distribute
Core

IS-
Oil

MCOE Marketing, Contracts and Order Entry

HPM Hydrocarbon Product Management

EXG Exchange Handling

TD Transportation Distribution

MAP Marketing Accounting, Pricing

TDP

MRN

SAP AG 1998, H.Kisker 25


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

Storing External Quotations in R/3 IS-Oil

IS-Oil Quotation Table


External
Quotations Source X
Quotation no. X
Date X
Quotation type X
Price
Currency
By
Manual or Unit of Measure
electronic
update

SAP AG 1998, H.Kisker 26


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

Formula and Average Pricing - The Big Picture


Condition Price Analysis Price Analysis
Maintenance
1st Level 2nd level
SD MM overview screen detailed report

SD document flow Formula Screen Formula master

Contract Define links to store standard formulae


Order external
Invoice quotations.

MM document flow Final price calc. rules Invoicing based on


provisional then final
Contract Quotation calculation rules
Order Exchange rates
Goods Receipt
Invoice Verification
Provisional calc. rules Average exchange rates

In release 1.0C Quotation


In Release 1.0D Exchange rates

SAP AG 1998, H.Kisker 27


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit
Key Downstream Business Processes
Acquire/ Store/
Transport Manufacture Market
SAP Trade Distribute
Core

IS-
Oil

MCOE Marketing, Contracts and Order Entry

HPM Hydrocarbon Product Management

EXG Exchange Handling

TD Transportation Distribution

MAP Marketing Accounting, Pricing

TDP Tariffs, Duties and Permits

SAP AG 1998, H.Kisker 28


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit
What is Excise Duty?
Excise Duty is a quantity-based tax,
payable when there is a movement of material

Product held
Product held
taxed
untaxed

= 10000 L x 1.5 DEM / L


ED
payable

SAP AG 1998, H.Kisker 29


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit
Valuation Type and Handling Type

taxed taxed

untaxed ED-freeuntaxed

Our ED situation is defined by: Their ED situation is defined by:

our ED Status (valuation type) Excise Duty applied at a rate


defined by handling type
Excise Duty applied at full rate

SAP AG 1998, H.Kisker 30


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

Key Downstream Business Processes


Acquire/ Transport Manufacture Store/ Market
SAP Trade Distribute
Core

IS-
Oil

MCOE Marketing, Contracts and Order Entry

HPM Hydrocarbon Product Management

EXG Exchange Handling

TD Transportation Distribution

MAP Marketing Accounting, Pricing

TDP Tariffs, Duties and Permits

MRN Marketing, Retail


Network

SAP AG 1998, H.Kisker 31


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

The 6 MRN design elements - Status at 1.0D


1. Single point of access - complete (inc. Archiving and
authorization)

R/3 2. Object links and navigation - complete

++ 3. Delivery point information - master data structures complete


(all further development under functional category BDRP)

4. Business partner relations - complete

5. Retail network contracts - extended contract data segment and


indexing via location - complete

6. Reporting by location (SIS / CO-PA) - complete

SAP AG 1998, H.Kisker 32


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

Key Downstream Business Processes


Acquire/ Transport Manufacture Store/ Market
SAP Trade Distribute
Core

IS-
Oil

MCOE Marketing, Contracts and Order Entry

HPM Hydrocarbon Product Management

EXG Exchange Handling

TD Transportation Distribution

MAP Marketing Accounting, Pricing

TDP Tariffs, Duties and Permits

Marketing, Retail
MRN Network

BDRP Bulk Distribution Replenishment Plan

SAP AG 1998, H.Kisker 33


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

Delivery Point Information - BDRP-Integration


Features

Storage object SOC and SCP


characteristics information
(SOC) for inheritance from
definition of location to business
location tankage partner

Site control Persistent definition


parameters (SCP) of BDRP information
for definition of for changing business
general partners
replenishment
parameters

SAP AG 1998, H.Kisker 34


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

Self-Service application - Dip-level entry per customer tank

Self-service Internet
Application
Dip level entry per customer
tank

Customer stock levels within tanks


are calculated using the Storage
Object characteristics Tank-strapping
tables

SAP AG 1998, H.Kisker 35


SAP Oil & Gas, Raw Materials & Mining
Industry Business Unit

R/3 IS-Oil Downstream Knowledge Product

Introduction Guided Learning Tour Key Topics

History of IS-Oil Overview Function Brochure

Rollout Exchange Training Slides

Marketing Brochure Marketing, Contracts and Order Entry Release Notes

Marketing, Accounting, Pricing Release Strategy

Hydrocarbon Product Management Technical Information

Marketing Retail Network Success Stories

Knowledge Tariffs, Duties and Permits Screen Cams

Product Transportation and Distribution Reference Model *


*
Bulk Distribution Req. Planning API/ASTM Calculator *

SAP AG 1998, H.Kisker 39