Key Trends in Enterprise Communications Oil

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Key Trends in Enterprise Communications- Oil
Gas Industry

• MECOM 2009

Anand Rangachary Managing Director South Asia and
Middle East May 2009
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Table of Contents
A Brief Overview of Oil Gas Sector
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2
Role of ICT in the Oil and Gas Sector
ICT Trends
3
Key Take-aways
4
3
Global Response Massive Government Stimulus
USA 700 billion bailout Rapid interest rate
cuts 23 billion support for top 3 auto
companies Obama 787 billion stimulus plan -
Plan to create 2.5 million jobs by 2011
Financial Sector Stability Plan
UK 29.7 billion package Germany 92
billion relief package Belgium Switzerland
Capital infusion ECB Interest rate
cuts France 50 billion stimulus package
Russia Support for ruble 20 billion stimulus
package
Japan Interest rate cuts, 447 billion yen
stimulus package South Korea Interest rate
cuts and efforts to keep currency stable, 11
billion stimulus package
China Interest rate cuts and 586 billion
stimulus (infrastructure, rural). Industry
specific support for Automotive and steel,
shipbuilding, textile and machinery
manufacturing, electronics, petrochemicals and
light industry India Interest rate cuts and
other monetary measures which increased
liquidity. Three stimulus plans worth 10 billion
(infrastructure, exports, textiles) announced by
the Government
Brazil Support to real, infrastructure
development under PDP (more than 64 billion
injected to financial system). More power for the
Central Bank. Sector specific support to Oil and
Agriculture

• Global Response
• Governments infusing capital into financial
  institutions
• Globally coordinated interest rate cuts
• IMF offers bridge loan to meet foreign exchange
  requirements
• Discussions, coordinated efforts (G20 summit)

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Factors impacting the oil and gas sector
Fluctuating Demand
Asset Management
Operational Excellence
Oil Gas Sector
Skewed Margins
Low reserve accretion
Fluctuating Prices
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ICT spending- Industry Average

• ICT spend 5.2 of revenues
• Industrial automation only 18
• Increased focus on the lean manufacturing and
  making the process more optimized
• investments in upstream in spite of slowdown in
  demand

5.2
Industrial Automation
0.9
4.3
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Impact of Economic Downturn
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Table of Contents
A Brief Overview of Oil Gas Sector
1
2
Role of ICT in the Oil and Gas Sector
ICT Trends
3
Key Take-aways
4
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ICT Enabling Processes in Oil and Gas

• Collaboration tools
• EDMSs
• ERPs
• Handhelds GIS

• ERPs Oracle, SAP. Microsoft
• EDMSs and Collaboration tools
• Business Integration
• Data centers, Servers
• Knowledge Management (Data mining, Modeling)
• GIS

Data Management
Workflow Management

• To establish procedures and processes
• To ensure feedback mechanisms

• Historical Data Management
• Operational Data Management

Role of ICT

• Unified Communications
• Telecom
• Wireless Comm.
• GIS

Collaboration
Process Management

• Industrial Automation
• Wireless Comm.
• ERPs
• GIS Track and Trace

• To ensure smooth process flow

• To facilitate easy communication

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Distribution of IT/Telecom Spending- Oil Gas
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Table of Contents
A Brief Overview of Oil Gas Sector
1
2
Role of ICT in the Oil and Gas Sector
ICT Trends
3
Key Take-aways
4
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Outsourcing
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Outsourcing Market

• Global outsourcing TCV (Total Contract Value) is
  estimated to be around 90 billion in 2008
• Human Resource Outsourcing is the fastest growing
  segment
• India is the leader in the global outsourcing
  market followed closely by China
• The TCV from EMEA decreased by 48 due to
  recession. The TCV grew significantly in the Asia
  Pacific

H2 07
H1 08
H2 08
H2 07
H1 08
H2 08
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Outsourcing- need for outsourcing

• Outsourcing in the form of Managed Services like
  managed hosting, co-location and enterprise
  management services is popular due to the
  following
• Reduce capital expenditure on non core technology
• To improve reliability and security of critical
  systems and data
• To enable quicker go-to market through IT enabled
  components
• Moving away from traditional outsourcing towards
  asset management
• On the operational side - Mid stream more likely
  to be outsourced
• Key Trends in Outsourcing
• Near shore destinations
• Retention of Professional Expertise
• Green IT - preferred theme

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Outsourcing Standardisation is the way forward

• Processes that are outsourced
• Finance
• Human resource management
• Procurement
• Logistics.

Outsourcing
Shared Systems

• Processes that are not outsourced
• upstream operations
• asset management
• engineering related applications
• technical computing

Common Process - Evolution
ERP Systems
Time
Proprietary Systems

• Application Standardization
• key enabler of Outsourcing
• Tier 1 companies are more focused
• Tier 2 companies yet to focus

Processes
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Cloud Computing
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Cloud Computing- an effective tool for
collaboration
Project Management Company

• Need for collaboration
• Geographically distributed systems
• Diverse companies collaborating during different
  stages
• Smooth flow of communication
• Better Workflow management
• Better Document Management
• Cloud computing enables all these and more
• Blend heterogenous systems
• Improved flexibility

Engineering Procurement Company
Document Management
Collaboration
Design Companies
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Unified Communications
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Unified Communications

• Trend towards Unified Com delivery on a pay-per
  use basis and Communications Enabled Business
  Processes (CEBP)

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Data Centric Approach - Data Management Asset
management
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Market Trends- Asset Integrity Management
Middle East Market
CAGR 12-14
Risk based Inspection
Integrated Approach
160-180 Mn
Corrosion Engineering Assessment
Process Safety Management

• The Global Asset management market is estimated
  to be around 1.4 Bn and the EMEA region accounts
  for 30 of this market.
• Better data management capabilities is essential
  for asset management

Pipeline Integrity Management
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Geographical Information System
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Application Trends - GIS evolving interface

• Geo spatial data
• Used in maintenance both in the proactive and
  reactive phases
• Integrates Applications on single platform

Geographical Information System
Evolving interface for the following
Upstream
Midstream
Downstream

• Production Data
• Data from Floating platforms
• Information from oil Rigs
• Information from vessels that store and transport
  oil

• Pipeline Information
• Key critical factors like
• Temperature
• Pressure

• Refineries Operational data
• Process Flow
• Workflow Information

Oil company executives can explore, evaluate,
develop, and commercialize producing fields in
less than half the time it takes today.
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Table of Contents
A Brief Overview of Oil Gas Sector
1
2
Role of ICT in the Oil and Gas Sector
ICT Trends
3
Key Take-aways
4
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Key Take-aways
Data Centric models paving way for Asset
Management for existing assets
GIS is moving away from a mere geo spatial
reference to an evolving interface for all
applications
Utilisation of tools like Unified Communications
and Cloud Computing to enable better workflow
management
Future Role of ICT
Cloud computing is an effective tool for
collaboration
Evolving tools like cloud computing and UC enable
quicker process management
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