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Middle East & Africa

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ccounting for 56% of total global reserves*; Taking Operators in the Middle East and Africa from Efficient to Effective.

The oil fields of the Middle East are some of the most productive in the entire world with more than half of the world's oil needs being met by the reserves in this area. The oil and gas industry is the foundation of the MENA economy and with a surge in demand for energy globally and with recent increases in oil prices, there are vast amounts of opportunities for companies operating in this sector. SAP Oil has been active in the region for the last 20 years; today we service a robust client base ranging from Start-Up juniors to International Joint Ventures and NOC’s in Kuwait, Abu Dhabi, Egypt and many locations across Northern Africa. We have supported customers and watched a ‘coming of age’ in the region, as National Oil companies are no longer the 'step children' of Joint Venture partnerships.

In the International markets of the upstream industry, we see many common themes that are advancing the pace of technology to support key challenges. Some of the major critical regional themes that we see currently include:

  • Operational Excellence: The MENA region has a long history of operational excellence, with far greater ratios of professionals focused on drilling activities compared with operations run in the United States, for instance. However, continuing to drive this theme is top of mind and Operators and technology is continuing to address the changeable dynamics with single sources of technology that are specifically focused on increased levels of visibility in to real time production activities. A good example of this is the ability that some operators now have to check the chemical cost per barrel of oil lifted, which would not have been possible historically. It is this transparency between the back office and front office that delivers true business value understanding true cost and impact across functional groups to drive operational excellence across the business.
  • Flexible and fit for purpose solutions: For many operators, the ability to develop a technology based ‘license to operate’ is essential. A backbone of technology that has a lower cost of ownership than traditional ERP frameworks and is focused on key oil and gas processes, bridging front and back office and provides full operational transparency and enables effective management of assets is required for operations large and small. Equally as important is the flexibility in systems to scale up - or down, depending on the project lifecycle or divestiture strategy.
  • Effective Management of Mature Oilfields: As Oilfields become more mature, in some cases with a 50, 60 or even 70 year life span, Operators look to drive further efficiencies to increase lifetime and value. Improved recovery rates with better reservoir management and production optimisation, which is enabled through accurate data for more effective management is driving heightened levels of insight to deliver optimum reservoir management and maximum oil recovery.
  • IT Consolidation: The possibility of consolidating a huge IT infrastructure run from functional departments across multiple operations delivers a level of visibility to intelligently consolidate infrastructure. Not only this but the application of fit for purpose and flexible technology reduces systems cost and complexity and delivers high-performance end-users, regardless of their location.
  • Potential Unconventional Activity: The US unconventional renaissance which is racing ahead of the rest of the industry provides an excellent pool of processes and best practices implemented by the world’s most successful operations. New technology and broader best practices have made unconventional formations and assets far more economically viable to develop. Much has been learned during the unconventional renaissance in the US and the insight embedded in technology to support these activities is accelerating unconventional E&P with best practices and fit for purpose upstream technology solutions across emerging markets.
  • Harnessing and leveraging new technology delivery mechanisms: Rapid advances in technology have transformed the workplace in recent years. Technology has changed the way operations can be run. The explosion of technology has impacted the way people communicate. Cloud based, SAAS based solutions are enabling new and more effective ways of working and reporting for professionals from the drill site, the back office and in the board room.
  • Increasing Compliance and Regulations: Environmental health and safety is top of mind for any operator, but extending this theme of best practice through worker Certification is equally key. The need to adhere to not only training, drug testing, certifications for off shore, on shore, even welding certification down to functional level brings requirements to manage this from a single location can be daunting. All of that needs to be tracked and accounted for in a single location brings a lot of value from a compliance as well as risk avoidance perspective.

*Source: BP Statistical Review of World Energy, June 2012

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