Below the surfaceEnergy, Utilities & Chemicals the way we do
itCapgeminis Upstream CapabilitiesTodays ChallengesIn the past two
years oil prices havefluctuated between extreme highs anddepressing
lows and the rules ofengagement for the oil industry havechanged
beyond recognition. Oilcompanies face a level of volatilitythat few
could have anticipated acouple of years ago and it isincreasingly
difficult for oil companiesto formulate a consistent andsustainable
business strategy.The industry is facing other
significantchallenges:Maturing assets and highproduction
costsIntegrity managementBlurring corporate and
functionalboundariesStricter regulationsSupply-demand
imbalanceComplex and remoteenvironmentsDemographic crunchReserves
replacementProcess control systemvulnerabilityReal-time
collaborative workenvironmentsWith the backdrop of constant
changeand continual focus on value drivers, wefocus on leveraging
technology tooptimize operational excellence.Capgeminis
TechnoVision 2012 ForUpstream Oil & Gas3represents ourthought
leadership framework of how ajoint business and technology vision
canguide the enterprise to materialcompetitive advantage.Capgeminis
Oil & Gas locations includemajor oil & gas centres:
Houston,Calgary, Beijing, Utrecht, Stavanger andLondon (c.f. figure
1).Capgeminis ServicesCapgemini helps organisations torespond to
todays challenges viapractical propositions that useoperational,
business and technologyapproaches. Our approach is alwayshighly
collaborative, and in manyassignments we transfer the
relevantskills and tools to client staff so thatthey can be re-used
on subsequentprojects.Operational performanceimprovementOil &
Gas companies are undercontinuous pressure to operateoptimally and
safely, a challenge that ismagnified at times of high oil
prices.Whether a company is looking atdriving costs out of
operations, adoptingnew ways of working, improvingexisting business
processes andequipment uptimes, or utilising newtools and
applications, there are alwaysopportunities to
streamlineperformance. Capgemini has workedacross the spectrum of
Oil & Gasorganisations, from operators through tosuppliers, to
deliver tangibleimprovements in operationalperformance.Asset
lifecycle managementIf they are to increase efficiency andreduce
costs, companies need toharmonise short-term scheduling
andlong-term planning into a trulyintegrated planning approach.
Byprioritising and aligning activities acrossfunctions, they can
focus on achievingthe right balance of work rather thanjust the
right sequence of activities.Organisations can also develop a
morerobust long-term view of their activities,with business
outcomes and riskmitigation clearly linked to the portfolioof work.
Capgeminis approach helpscompanies address data, systems andpeople
aspects in order to achieveintegrated planning goals.Supply chain
optimisationAn important aspect of improvingoperational performance
is optimisationof the supply chain. Capgemini has acomprehensive
set of tools andapproaches that have assisted Oil & Gasclients
across a wide spectrum ofprojects. For example, we can helpdefine
new business strategies andmodels that lower operational costs.
Wecan improve the effectiveness of capital1 Read more about
Capgeminis benchmarking studies in the flyer: Energy Industry
Comparative Performance Benchmarking.2 Find out more about
Capgeminis Epicentre.3 2009, Read more about our TechnoVision
approach in the Point of View: TechnoVision 2012 For Upstream Oil
and Gas.Capgeminis approachCapgemini has a global presence in
theOil & Gas industry, providingconsulting, technology and
outsourcingservices to over 200 clients in morethan 30 countries.
Our services aresupported by our Oil & Gas centre ofexcellence
(CoE) a worldwide pool ofindustry experts that form a
globalknowledge base. Our way of working isbased on a collaborative
businessenvironment that includes:Innovative use of
businessaccelerators, technology and forward-thinking methods to
rapidly resolvecomplex business challenges.Research and analysis on
industrytrends resulting in thought leadershipthat provides key
market insights.Capgemini maintains a global internalnetwork and
the CoE has conductedbenchmarking studies1since 1992.Our benchmarks
cover the entirevalue chain and result inimprovement opportunities
for ourclients. Active participation withindustry organisations
ensures that weremain on the cutting edge ofindustry solutions.A
global ecosystem that links ourindustry experts to regional
resourceswho are specialists in areas such assupply chain,
financial performance,information architecture, and datamanagement.
We collaborate with ourOil & Gas clients (from operatorsthrough
to service companies) tofocus on operational excellenceactivities.
Our vendor partnershipsare based on strategic global solutionsas
well as carefully selected Oil & Gasportfolio partners.In
addition to global CoEs, weenhance our capabilities throughnational
CoEs, such as theEPiCentre2(Exploration andProduction Industry
Competence).Established formally in 2007, thisinitiative mobilizes
and leverages theunique experience, industrycompetence and
capabilities acquiredfrom 30 years close cooperation withkey
operators and services companieson the Norwegian Continental
Shelf.CalgaryHoustonStavangerUtrechtPauBeijingSydneyAberdeenMilanMadridLondonMumbaiDubaiJohannesburgMexico
CityBuenos AiresCasablancaBucharestRio de
JaneiroSingaporeMoscowLuandaFigure 1: Capgemini is present in all
major oil and gas centresEnergy, Utilities & Chemicals the way
we do itthe capability and skills to drive theright activities at
the right time,directing effort where it is needed toactively
manage credit.Technology enablersTechnology is often central to
unlockingvalue and improving performance.Capgemini has partnered
with a numberof operators to deliver innovativesolutions ranging
from disconnectedmobility solutions for Field Services,mobile
computing devices for operatorrounds, RFID for asset tracking
andagent technologies for intelligentoperations systems. In
addition todeveloping these technologies we haveprovided the
technical implementationand business change managementrequired to
deploy and sustain themsuccessfully.A new solution concerns
VirtualCollaborative Environments (VCEs)5:VCEs are realistic,
immersive 3D spaceswhere people interact with theenvironment and
each other in real-time, irrespective of their physicallocation.
The oil industry can benefitfrom exploiting both the technology
andpeople comfortable in theseenvironments. This will help
companiesto achieve remote asset management.programmes and
projects. We canincrease business flexibility and agility,perhaps
by implementing Leanprocesses. We also help organisations
tounderstand how their value chains willevolve as they move away
from basingtheir activities on products and assets,and start to
become integrated service-and solutions-based businesses.Integrated
operations servicesIntegrated Operations (IO)4is aboutcreating
value by bringing together theorganisations people, process,
andtechnology to deliver and act onfrequently-captured data in real
time. IOimproves production, drives recovery,reduces cost, and
optimises workprocesses and hence productivity. IO isnow a
well-established approach forlarge operators, but we are also
findingit highly relevant to the problems of thenew breed of leaner
operators that areemerging in mature basins such as theNorth Sea.
Oil Field Service companies,too, are expected to bring IO
concepts,support models and capabilities
topartnerships.Asset/company merger andacquisitionThe Oil & Gas
sector has seensignificant business growth andconsolidation through
the merger andacquisition of companies and assets.However, it is
significant that only a fewcompanies have successfully realised
thebenefits anticipated from post mergerintegration. Being able to
reconcileanticipated versus actual value isimportant, and Capgemini
has extensiveexperience assisting organisations toachieve this
goal.Financial performance managementOil Field Service companies
and othersuppliers are often troubled by creditmanagement issues
with theircustomers. Capgemini has anestablished methodology that
looks atthe end-to-end process for creditmanagement, achieving
material benefitsthrough process improvement,independent of any IT
systems andtechnology changes. Our Month in theLife Of cycle
approach is used to buildI.T. Business servicesThe Information
Technology function isoften regarded as a business-critical partof
an organisation, but one that doesnot add value. However, in the
world ofreal-time (or right-time) data andbusiness intelligence,
ITs role is shiftingfrom operations support and assuranceto value
creation and true businesspartnership. Capgemini holds aknowledge
base of trends and leadingpractices, built up throughbenchmarking
and CIO surveys, plusmore than 15 years experience workingwith many
of the worlds leading Oil &Gas companies, from supermajors
toleading independents. We helporganisations set and implement
their ITbusiness services agendas through avariety of approaches,
both bespoke anduniversal.4 Read more about Integrated Operations
in Capgeminis Points of View: 10 Security Principles for Integrated
Operationsand Integrated Operations Generation 2 and Beyond
(IO@anywhere).5 Read more about VCE in our Point of ViewBecome
better at what you dobybecoming more effective managinghow you
operate and how yousupport operations thereby reducingcost and
driving out ineffciencyBecome more effective athow you work
throughstreamlining processes,improving organiationaldesign and
evolving peopleand cultural behavioursLeverage technology
improvementto support new ways of workingeffciently in both the
operationaland offce/corporate
domainsBusinessOperationalTechnologyAsset Lifecycle
ManagementSupply Chain OptimisationIntegrated Operations
ServicesAsset/Co. Merger & AcquisitionFinancial Perf.
ManagementTechnology EnablersIT Business ServicesERP Data
ManagementBusinessOperationalTechnologyOperational Perf.
ImprovmentFigure 2: Capgeminis Propositions for Upstream Oil &
GasEUC/2009/10/E.T.www.capgemini.com/energyCapgemini, one of
theworld's foremost providersof consulting, technology
andoutsourcing services, enables its clients totransform and
perform throughtechnologies. Capgemini provides itsclients with
insights and capabilities thatboost their freedom to achieve
superiorresults through a unique way of working the Collaborative
BusinessExperienceTM- and through a globaldelivery model called
Rightshore,which aims to offer the right resources inthe right
location at competitive cost.Present in over 30 countries,
Capgeminireported 2008 global revenues of EUR8.7 billion and
employs over 90,000people worldwide.With 1.2 billion euros revenue
in 2008and 12,000+ dedicated consultantsengaged in Energy,
Utilities andChemicals projects across Europe, NorthAmerica and
Asia Pacific, Capgemini'sEnergy, Utilities & Chemicals
GlobalSector serves the business consulting andinformation
technology needs of many ofthe worlds largest players of
thisindustry.More information about our services,offices and
research is available atwww.capgemini.com/energyAbout Capgemini and
theCollaborative Business ExperienceCopyright 2009 Capgemini. No
part of this document may be modified, deleted or expanded by any
process or meanswithout prior written permission from Capgemini.
Rightshore is a trademark belonging to Capgemini.For further
information, please contact:Exploration and production
(E&P)data managementData management is a perennialheadache for
E&P companies, especiallywith todays flood of real-time data
andwide choice of applications. Capgeminihas a strong track record
assisting E&Pcompanies with data managementstrategies and
architectures, andresolving the associated processes andchange
management issues. We havebeen engaged by internationalcompanies to
provide support for theimplementation of E&P datamanagement
applications. Our E&P ITCentre of Excellence based in
Stavangeroffers application development andsupport across the Oil
& Gas valuechain.6Capgeminis referencesCapgeminis experience in
the upstreambusiness covers the operational,business and technology
approachthroughout the globe, as illustrated bythe following sample
of references.A supermajors integratedoperations programmeCapgemini
helped a supermajor toimplement an IO programme in one ofits
flagship operating units, improvingoperational efficiency across
all itsassets. A Collaborative Environment(CE) acts as a hub for
real-time supportand monitoring of wells and equipment,production
optimisation and always-onaudio visual connectivity between
officeand asset. This supermajor has recordedsignificant
operational improvements,notably the ability to recover from
anunplanned shutdown a day faster thanbefore the introduction of
IO.Exploration and production datamanagement for PetromCapgemini
enabled Petrom to confirmthat Schlumbergers software productsmet
its requirements for datamanagement and retrieval of upstreamdata
types like seismic, logs, wellheader, deviations and
productionvolumes. In collaboration withSchlumberger, we then
installed andtested these products, migrating datafrom legacy
systems and providingtraining workshops for data managers.Capgemini
also developed an approachfor introducing a Master Data
Store,ensuring that any interruptions to dailybusiness during the
transformationperiod would be kept to a minimum.Operational
performanceimprovement for StatoilHydroStatoilHydro faced the
challenge ofimproving cost efficiency and extendingthe economical
field life of two oil fields Statfjord and Gullfaks whichproduce
almost 50 percent of thecompanys crude oil volumes.
TogetherCapgemini and StatoilHydro developeda large-scale
transformation programmethat has helped create sustainable,tangible
improvements in the operationsof the two fields. StatoilHydro
hasrealised benefits in the form ofimproved efficiencies, reduced
costs,increased oil production, and energysavings resulting in both
cost reductionand environmental improvements.Shells I.T. Business
servicesWorking with the Shell Group CIOOffice, Capgemini has
helped to definea single IT Delivery Model and todevelop the
roadmap to top quartileperformance. The Delivery Model scopecovers
every aspect of IT within Shell,from strategic activities such as
PortfolioManagement, Supplier RelationshipManagement and
Innovation, through tooperational activities such asApplication and
Infrastructure Support.The project has allowed Shell toestablish a
collaborative, outcome basedculture of functional improvement.6
Read more about E&P content management in thedigital
oilfield.Gord ReynoldsUtility Practice LeaderGlobal Smart Energy
[email protected]+1-416-732-2200
