Maximo in Oil and Gas

Oil and Gas Industry Solution & Customer Profiles

©2005 MRO Software, Inc. CONFIDENTIAL 2

Agenda Oil and Gas Industry Issues Market Presence to Oil & Gas Overview of Solution


Oil and Gas Industry Issues Equipment Reliability

License Extension

System Consolidation

Aging Workforce

Managing Supplementary Personnel

Companies have a system or systems to manage this

Companies take data from several sources to prepare the documents

Companies managing multiple applications for managing assets

Companies lose key parts of their workforce and are implementing point solutions to address this

Companies are implementing separate systems to manage supplementary personnel

But there is a new way of thinking …


Its not just about the asset…

…it’s about service delivered to the customer

… it’s about what the asset does


The Essence of Asset Management• Aging Assets

• Aging Workforce

• Mergers & Acquisitions• Changing Compliance Guidelines

• Faster changing markets

• More competition

• Embedded technology• More data

• Difficult to attract engineers

• More systems

ComplianceFramework

LimitedResources

LowestCost

HighestReliability

MAXIMIZING RETURN

ON ASSETS


Agenda Oil & Gas Industry Issues Market Presence to Oil & Gas Overview of Solution


Market Presence & Experience in Oil and Gas

Over 200 Oil & Gas companies worldwide using Maximo 8 of top 10 Oil & Gas Companies on Fortune 500 use

Maximo MRO Software has 23% market share of Chemical/Oil &Gas

industries for asset management software per ARC Maximo in use at Oil & Gas operations in 51 countries

E&P: BP, Abu Dubai National Oil, China National Offshore, Apache, Syncrude, Stolt Offshore

Refining: BP, Repsol YPF, Nippon Oil, Kuwait National Petroleum, Abu Dubai National Oil, Giant, Premcor, Japan Energy

Distribution: El Paso, Gulf South, NiSource Retail: BP Africa, Kuwait National Petroleum, Emarat, Abu

Dubai FOD

Experience

Examples


Worldwide Clients in Oil and Gas

• Atlantic LNG• Ameranda Hess• ADCO• ADNOC• Bluewater Marine• BP• Banoco• British Gas• Chevron• Caspian Pipeline• Cypress Refinery

• Columbia Gas• El Paso Energy• Expro• Exxon• Flint Hills Resources• Gasco• Gulf Canada• Halliburton• Karachaganak

Petroleum• Kvaerner• Lubref

• Maersk• Maraven/PDSA• Methanex• Mobil • Occidental• Oman Refining• Pemex• Petrokemya• Petrox• PTTEP Thailand• Repsol• Rowan Drilling

• RPC• Shell • Singapore Refining

Company• Stolt Offshore• Talisman• Tosco• Trans Canada Pipelines• Transco• Vico Indonesia• Wood Group• Zadco

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http://www.adnoc.com/goc/enp_oil_gas/adco.htm


Agenda Oil & Gas Industry Issues Market Presence to Oil & Gas Overview of Industry Solution


Product Expansion Model1. MAXIMO SAM Platform as foundation for product offerings

Customer Configuration

Industry Solutions

MAXIMOSAM Platform

2. Industry Solutions built on top of MAXIMO Platform3. Customer Specific Configuration built on top of Industry

Solutions4. Industry Solution Partners positioned as part of total solution

Transportation

Federal (tentative)

Nuclear

Oil & Gas

Pharmaceuticals

Transmission & Distribution


Product Expansion Model - Benefits

Product Expansion Model provides significant benefits.

1. Ability to rapidly create industry solutions.

2. Ability to easily tailor implementations for customer requirements.

3. Ability to ease upgrade path for customers to new releases.


Industry Solutions Ecosystem

MAXIMO

PartnerSolutions

Integrations

IndustryExtensions

IndustryBest

Practice


Maximo Oil and Gas

Industry Solution:Asset SpecificationsFailure CodesOptions:EDMACalibrationPrimavera P3e AdapterCore:Asset ManagementWork ManagementInventory ManagementPlanning & SchedulingWorkflowPurchasing

Maximo 5.2 Oil & Gas

Available


Failure Codes What is it?

Contains the BS ISO 14224 failure classes, problem, cause and remedy tables for each equipment type listed in the standard

Business Scenarios New Oil and gas customer does not have standard failure classes

and problem, cause, remedy structure. Wishes to use international standards

Existing customer not using MAXIMO failure reporting capability and wishing to do so.

Value Time take to gather and load failure classes, problems, causes and

remedies would be significantly greater than cost of solution Without standardized failure data, cannot implement reliability

analysis


Asset Specifications What is it?

Contains the BS ISO 14224 Equipment Unit Subdivision and Equipment Unit Specific Data tables for every equipment type listed in the standard

Business Scenarios New Oil and gas customer does not have standard asset

specification templates for locations or equipment. Wishes to use international standards

Existing customer not using MAXIMO asset catalog capability and wishing to do so with an industry standard methodology

Value Time take to gather and load asset specifications would be

significantly greater than cost of solution Standardized asset specifications facilitate comparisons of

equipment performance


Option – Primavera Adapter

What is it? Bi-directional integration between Maximo and Primavera

P3e and P3e/c Business Scenarios

For customers who have heavy duty planning requirements that need more power and functional capability than MS Project. Refinery shutdown planning. Multiple oil platform maintenance planning

Value Combines the power of two best of breed systems to get

the best out of both systems


Option – Engineering Management Adapter

What is it? The Engineering Data Management Adapter (EDMA) allows

for the automated exchange of equipment and location hierarchies with engineering systems (Intergraph, Bentley)

Business Scenarios Customers that want an engineering data management

system to hold master asset data Management of change business process

Value Engineering system holds master copy of plant data for

integrity purposes Complex integration to custom build


Option: Maximo Calibration What is it?

Provides documentation, data validation and traceability for all calibrated assets, as well as the standards that are used to calibrate them

Business Scenarios E&P Example: Used for both instruments and Fire & Gas

system Refinery Example: High level of calibrated instrumentation on

most refineries Value

Allows organizations to demonstrate that their calibration standards and tools are fully traceable

Provides historical records of calibration measurements for instruments, measurement and test equipment, and standards


Maximo Oil and Gas

Maximo Enterprise SuiteOil & Gas

Industry Solution:Physical LocationAsset CriticalityRegulatory ComplianceCondition for WorkAsset SpecificationsFailure Codes

Options:EDMACalibrationPrimavera P3e Adapter

Core:Asset ManagementWork ManagementInventory ManagementPlanning & SchedulingWorkflowPurchasing

Q1FY06

Industry Solution:Asset SpecificationsFailure CodesOptions:EDMACalibrationPrimavera P3e AdapterCore:Asset ManagementWork ManagementInventory ManagementPlanning & SchedulingWorkflowPurchasing

Maximo 5.2 Oil & Gas

Available


Physical Location What is it?

Provides ability to associate a physical location to an asset class

Business Scenarios Government safety regulations often require Oil and

Gas companies to classify process plants into hazardous zones, which reflect physical locations within the plant

Value Along with traditionally using a “Tag” reference from

P&ID’s, which is a drawing reference, customers can identify the hazardous area classification where the asset is physically located


Asset Criticality

What is it? A ranking index for maintainable equipment

Business Scenario Customers need to evaluate whether work needs to be

carried out within say 24 hours,3 days, 1 week based on preset ranking

Value Ensures that critical assets are given priority

maintenance


Regulatory Compliance What is it?

Provides ability to hold details of regulations relevant to work carried out in Maximo, and relate these regulations to both work planned in Maximo and actual work carried out

Business Scenarios Provide documented proof that work carried out in

Maximo was completed based on the required regulation

Value Provides the ability to demonstrate compliance with

many statutory requirements covering safety, health and environment


Condition for Work

What is it? Ensures that Maximo knows what condition an asset has

to be in before work can commence eg isolated, shutdown, running

Business Scenario A common element of the work planning process in

offshore oil and gas Value

Address safety issue in highly regulated environment Assist with planning efforts Cost avoidance of custom build work of solution


Questions?


Oil and Gas Value Proposition – Case Study

The CompanyApache Corporation• One of worlds largest Independent Operators• 120 Mmboe Annually

The Challenge

• Assimilate largest producing asset (45,000bpd) into operations in near term

• Implement Maintenance Mgmt system to handle stringent environmental and safety standards

The Solution

• MAXIMO• MAXIMO Project• PS Solutions (DVL, Field Security)• Workflow

The Benefits

• Implemented MAXIMO in 3 months• Set up planned maintenance program to alleviate high

cost emergency work in an off-shore environment• Reduced downtime


Oil and Gas Value Proposition – Case Study

The CompanyOccidental Petroleum• Oil & Gas Exploration, Production and

Chemical Production

The Challenge

• Reduce & cut maintenance downtime & costs• Adhere to Government Regulations• Maintain Fleet Assets• Standardize Item Descriptions

The Solution

• MAXIMO • Established Preventative Maintenance Routines• Standard Modifier Dictionary, consolidating databases at 32

locations

The Benefits

• Reduced maintenance downtime by 27%• Decrease in overall maintenance costs by 28%• Maintain 1,000 fleet assets to recover warranty costs


Oil and Gas Value Proposition – Case StudyThe Company

Abu Dhabi Onshore Oil Co. (ADCO)• 9th largest oil production company worldwide• Produces 1 million BPD

The Challenge• Legacy system expensive to support• Too high a proportion of emergency maintenance• Insufficient visibility of MRO Inventory

The Solution

• MROI implemented MAXIMO to provide SAM solution across the entire company

• All purchasing carried out through MAXIMO• Integrated with Oracle Financials using Enterprise Adapter

The Benefits

• Significant reduction in inventory levels• Target increase in planned maintenance achieved• Improved visibility of asset data available company wide• Consistent business processes across sites


Oil and Gas Value Proposition – Case StudyThe Company

BP Exploration UK• World’s 3rd largest oil and gas company• BP UK Upstream producing 2.4M BPD• Over 100 sites using MAXIMO worldwide

The Challenge

• Incorporation of different assets and cultures through mergers and acquisitions

• Significant lost production due to insufficient asset data• Company strategy to reduce supply chain costs using Internet

The Solution• Integrated MAXIMO system provided for both maintenance

and supply chain management• MAXIMO EE used for web based procurement with suppliers

connected to MRO Online Commerce Services

The Benefits

• Improved equipment failure data• MAXIMO used as vehicle to adopt common maintenance

practices across assets• Business targets for Internet procurement achieved


Oil & Gas Value Proposition – Case Study

The CompanyKNPC – Kuwait National Petroleum• 3 Refineries, 900K bpd• 110 Petrol Stations

The Challenge

• Replace 23 Legacy Systems• Provide Total Integrated Solution• Provide tool to handle Refinery Shutdowns and Daily Work

Scheduling

The Solution• MAXIMO 5.X for Maintenance, Purchasing and Inventory• Primavera Integration• Intermat SMD Catalogue

The Benefits

• Target ROI of $14.6M • Reduced Inventory value by $47M• Reduced unplanned shutdowns, shortened duration of

planned shutdowns• Streamlined purchasing process, more purchase orders, with

less resources

Documents

Maximo in Oil and Gas