Integrated Operations Capgemini’S Solution

Energy, Utilities and Chemicals the way we do it

Integrated Operations Capgemini’s Solution

Integrated Operations today and into the wider world of the National Called Smart Fields®, eFields, iFields, Oil Companies (NOCs) – for example ‘Digital’ Oil Fields, Field of the Future™ Petrobras and Aramco have highly or Integrated Operations (IO), these developed IO programs. We are also initiatives are aimed at creating value starting to see further developments by bringing together the organization’s in the service sector where product people, processes, and technology companies such as Baker Hughes, ISS to deliver and act on frequently- Group Ltd, and Petroleum Experts captured data in real-time. IO improves begin to understand the value that production, drives recovery, reduces Systems Integrators, such as Capgemini, cost, and optimizes work processes and can bring to major IO programs – hence productivity. primarily through our rigorous program management skills, our understanding IO is today one of the industry’s of change management, and integration ‘hot-spots’; the leading companies are of legacy systems. harnessing its potential, fast becoming a truly networked ecosystem and building The industry IO experiments of the the capability for next generation. IO past are now completed, with many has developed from being the preserve companies accepting IO as ‘business as of some of the oil and gas companies usual’. – such as BP, Shell and ConocoPhillips Key Offers Integrated Operations is cost reduction, work process efficiency and volumetric Capgemini’s IO offers cover the full improvement via ... IO program management, with the capability to address all areas, such as IO assessment, IO strategy development Operational including project roadmaps and business Fully Integrated Real-time and Financial case development. Supply Chains Data Reporting Immersion Through our experience, we have Transactional Technologies developed a repository of IO leading Unied Technical Processing to Business Models practice. We are therefore able to 4-D Seismic conduct ‘health checks’ as to our clients’ Remote Operations Visualization Smart Wells IO program against what is considered Management leading practice. From this we are Knowledge able to analyze the gaps and develop a Management Subsea Real-time Technologies Reservoir rectification plan. Virtual Information Collaboration When viewed through the technology eLearning lens we have expertise in IT architecture development, systems integration, we understand the IO security challenges (see below) and are working to address these issues with some of the world’s largest oil and gas companies. Lastly we have designed and written (in the Capgemini considers that there are three Process: Managing the changes context of the IO business environment) key topics that need to be addressed to associated with the transition from workflow processes and addressed the ensure that an IO program succeeds: traditional operations for IO is considered associated change management issues. to be critical to the realization of its full In conclusion, where our clients have Technology: Underpinning Integrated potential. Companies are moving away expressed a desire to have their own Operations is the availability of real- from their traditional functional processes bespoke applications to support them time and right time data. Improved in order to realize the full potential of IO. data management systems are required in their IO environment we have both to manage these increased volumes of developed and managed applications on data and to distinguish between critical their behalf. and non critical data. A common IT When designing or implementing architecture is necessary to provide a IO related processes or systems it is standard approach enabling data flows also important to consider security between different classes of applications. principles. Capgemini’s knowledge Service Oriented Architecture is a Process People and experience have already enabled foundational component which allows companies to exchange information in a for flexibility and integration. IO Value trusted and secure environment. The 10 1 People: People play a critical role key security principles are: in IO programs, as they are causing 1. Agree baseline security measures a fundamental shift in the way, and between stakeholders where, people work. Training is Technology 2. Define clear boundaries of necessary for onshore and offshore staff responsibility to fulfill changed roles. New skills and 3. Establish contracts competencies are also required to adapt 4. Ensure all data has clear ownership to new technology. 5. Trust authentication done by source 6. Ensure activity logging 7. Establish multilayer protection 8. Be open 9. Use role- and asset-based access 10. Show social responsibility.

1 Capgemini Point of View: 10 Security Principles for Integrated Operations (http://www.capgemini.com/services-and-solutions/by-industry/energy/publications/10_ security_principles_for_integrated_operations/) Energy, Utilities and Chemicals the way we do it

Selected Integrated Operations process to support our clients with their Application development and offers Integrated Operations program in North management: In a digital world Analysis & Design: Capgemini America and Europe. Capgemini has been working, for a uses an Analysis & Design process to number of years, with oil companies support our clients with their Integrated TechnoVision for IO: One of the in Europe and West Africa to develop Operations challenges. Essentially challenges facing the oil and gas and deploy solutions and tools to it is a hypothesis-driven capture of business is the alignment between the IT capture and analyze production the ‘as-is’ state of the business that is and Business elements. TechnoVision is and maintenance data, and other followed by the design of the future a tool that we deploy with our clients to information. The management of these state. The subsequent solution is then facilitate better alignment between the tools is also delivered by Capgemini. implemented over a period of time. We various parties. have successfully used this solution for Application selection: In many cases our Digital Oilfield clients in Europe and Benefits Logic™: This is a Capgemini our clients wish to use ‘commercial off Azerbaijan. standard consulting tool initially the shelf’ (COTS) packages rather than developed for use in the Finance Sector. develop their own solutions. Capgemini Accelerated Solutions Environment: However, we have successfully used the has been engaged by oil and gas This solution is often used at the start tool to support our engagement with the companies around the world to use our of an engagement to help facilitate, for Shell Smart Fields®. The challenge was package selection process that facilitates example, the alignment of the various to calculate the value that the client’s the acceleration of this task. This process elements of the business and IT. The program had delivered to the business helps our clients achieve their ‘first oil’ facilitated process involves three phases since inception. The results were date by mitigating some of the risks. – scan, focus, act – all set in a unique presented at the SPE Intelligent Energy learning environment. We have used this conference in 2010.

Benefits experts that form a global knowledge papers in a number of industry journals, The main benefits of the IO Program base. Our way of working is based on a including North Sea Oil, European Oil include: Production Increase, Ultimate collaborative business environment. & Gas, and Digital Energy Recovery Increase, Capex reduction, Opex reduction and Health, Safety Capgemini’s presence on the Society of Since 2004, we have been advising and Environment (HSE) improvement. Petroleum Engineers (SPE) Intelligent companies on Integrated Operations To achieve best value from Integrated Energy Program Committee for the and we have an unequaled track Operations technology, it is critical past five years gives us access to record of references. Recent examples to identify the opportunities intimate insights as to how the industry of Capgemini assignments include the for implementation early in the is developing and the capability following: development process or early in the requirements of systems integrators field life and track them through to supporting the industry. Leveraging Smart Operations for Petoro execution. Capgemini assisted Petoro in performing We have built up partnerships with the readiness assessment to gain tangible Shell has quantified the benefits from key vendors in order to deliver value benefits through Smart Operations the implementation of its Smart Fields to our clients – notably with the SAS practices on the Norwegian Continental program from 2002 to 2009 to US$5 Institute, HP, ISS Group Ltd, Intergraph, Shelf (NCS). The NCS is a mature billion. The value has mainly been OSIsoft and Labware. We are continually oil and gas region facing declining created by Smart Wells, followed building up our delivery capability, production, increasing operating costs by well optimization and reservoir leveraging our partnership alliances and and reduced investment. It also has optimization.2 building new ones where appropriate. one of the highest labor costs in any global oil and gas region. To counter Capgemini’s experience We are present at key industry these, Petoro sought new ways to make Capgemini has a global presence in conferences, such as SPE conferences, development of remaining reserves more the Oil & Gas industry, providing Intelligent Energy, Cambridge Energy economical. consulting, technology and outsourcing Research Associates (CERA) conferences, services to over 200 clients in more than Norwegian Petroleum The solution was addressed in two parts: 30 countries. Our services are supported The two teams launched a pioneering by our Oil & Gas center of excellence Federation (NPF), European Association effort in 2004 to gauge the “Smart (CoE) – a worldwide pool of industry of Geoscientists & Engineers (EAGE) Operating” readiness of major operators and more. And we have published in the NCS. Operator roadmaps were

2 In: “Business Value From Intelligent Fields”; Frans van den Berg, SPE, and Robert K. Perrons, SPE, Shell; and Ian Moore, SPE, and Gert Schut, Capgemini; SPE 128245; 23-25 March 2010 www.capgemini.com/energy the way we do it

developed and applied by gaining insights into other operators’ experiences About Capgemini and the and established leading practices. Two Collaborative Business Experience™ years later, Petoro and Capgemini launched an initiative to assess progress Capgemini, one of the reported 2009 global revenues of as well as identify leading practices world’s foremost providers EUR 8.4 billion and employs 95,000 to further evolve the transformative of consulting, technology and people worldwide. shift. This was followed a year later to outsourcing services, enables its clients accelerate the uptake of leading practices to transform and perform through With 1.13 billion euros revenue and delivery of benefits in the NCS. technologies. Capgemini provides its in 2009 and 12,000+ dedicated clients with insights and capabilities consultants engaged in Energy, IO has allowed the NCS to build a new that boost their freedom to achieve Utilities and Chemicals projects across organizational capability to optimally superior results through a unique Europe, North America and Asia harness the potential afforded by way of working, the Collaborative Pacific, Capgemini’s Energy, Utilities rapid emergence of proven tools and Business ExperienceTM. The Group & Chemicals Global Sector serves the techniques, albeit, within the constraints relies on its global delivery model business consulting and information of asset capacity and organizational called Rightshore®, which aims to technology needs of many of the culture. It is multifaceted, interweaving get the right balance of the best talent world’s largest players of this industry. people, process, technology and from multiple locations, working as cultural dimensions. It is also fast, being one team to create and deliver the More information about our services, recognized as a true capability aligned optimum solution for clients. Present offices and research is available at www.capgemini.com/energy to the NCS operators’ ability to find, in more than 30 countries, Capgemini develop and produce oil and gas.

A supermajor’s integrated operations program Capgemini helped a supermajor to Contacts: implement an IO program in one of its flagship operating units, improving operational efficiency across all its assets. Pat Quinlan A Collaborative Environment (CE) [email protected] acts as a hub for real-time support and Ian Moore monitoring of wells and equipment, [email protected] production optimization and always-on audio visual connectivity between office and asset. This supermajor has recorded significant operational improvements, notably the ability to recover from an unplanned shutdown a day faster than before the introduction of IO.

Integrated Operations Strategy and Implementation for an upstream player Capgemini investigated the concept and evaluated industry best practices and implementation techniques with regards to an Integrated Operation Strategy for an upstream player. The concerned field faces a relatively short life span due to reserve size, and technical and economic constraints which have an impact upon the level of operational efficiency. The developed strategy met the high ambitions in terms of integration of people, work processes and technology.