SAP reports oil and gas deployment

Reporting at European and US SAP user conferences, oil and gas corporations such as Marathon, Eni, Shell and Surgutneftegaz are developing portals, e-commerce hubs and production revenue accounting systems around SAP infrastructure.

SAP’s annual European conference SAPPHIRE took place in Lisbon last month and included several oil and gas case histories. According to SAP, its software is deployed in some 70% of all integrated oil and gas companies worldwide and there are over three hundred SAP employees dedicated to the oil and gas business solution portfolio.


Marco Casati presented Eni’s SAP-powered enterprise portal. MyEni, a joint Eni/SAP development, is designed to give simple and secure access to and management of information, services and applications. Eni’s existing intranet solutions have been rationalized into the new workspace which offers business applications and interaction between employee and company. Other functions include a customizable area ‘MyPages,’ a knowledge sharing function and news feeds. There are currently around 5,000 users of myEni – next year the system will be extended to 50,000 users worldwide.


Frans Liefhebber described Shell’s work on Transactional eProcurement. Shell’s eProcurement connects buyer’s and seller’s ERP systems for purchase order creation, change, approval, receipt confirmation and invoice matching.

Trade Ranger

The industry-supported e-business hub Trade-Ranger is at the heart of a variety of Shell’s eProcurement test configurations. 1100 users are registered with Trade-Ranger, with some 460 actively trading. A single data warehouse has been established with $23bn of aggregate historical spend. Nevertheless Trade-Ranger faces challenges such as an immature marketplace, competition from other public exchanges such as OFS Portal, catalogue content issues and different stakeholder business cases.


Rinat Gimranov described JSC Surgutneftegaz’s SAP-based lifecycle technical and financial asset management of pipelines, buildings and oilfield equipment. The Russian super major, with 85,000 employees needed close integration of legal, contractual, technical, and financial asset accounting. The solution integrates an ESRI ArcView GIS map interface with asset information in SAP. Assets managed include roads, buildings and equipment specifications, financials and scanned documents such as leasehold. The GIS records history of construction and allows access to technical and financial data throughout construction projects – managed in SAP Project Systems.


Speaking at the US SAPPHIRE in Florida, earlier this year, Marathon Oil’s Gary Newbury outlined its major new production revenue accounting (PRA) system. Marathon’s production revenue accounting system links tools from Tobin, Landmark and SAP together to integrate production data with its financial systems for its US domestic properties. These comprise 8,500 operated well completions, 2,100 delivery networks, 30,000 royalty owners and 20,000 joint venture partners.


SAP’s new production revenue accounting package is interfaced with land and contract management software (Tobin’s Domain) and Landmark’s Oilfield Workstation (TOW). Newbury believes that such a game-changing implementation requires a systems integrator with a track record (PricewaterhouseCoopers was chosen) and great communication of the project’s scope and impact to management and employees. Marathon’s Renaissance project went live in January 2002 – in a big bang switch over. This was made possible by lots of testing of software, many dry-run conversions and substantial education of all concerned.

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