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© 2016 Halliburton. All rights reserved.

Digital Transformation in Oil & Gas

NAPE Technical Session

March 2019, Lagos

1919 - 2019

2© 2016 Halliburton. All rights reserved.

The upstream industry has implemented several types of digital

oil fields and smart field technologies. However, this should not

to be confused with digital transformation.

The concept of the digital oil field is defined by Andre (2016) as

“having the right tools and technology to maximize the

profitability of the field, and make it as secure and

environmentally responsible as possible in a mostly automated

way.

And to achieve that, it is necessary to bring the data of many

disparate systems (reservoir, production, network, supply-chain,

models/simulation, maintenance and operations) to

process/analyze and find the ideal balance for one’s operation

and field.”

Digital Transformation in Oil & GasCreate

innovative pieces that fit

together

Subsurface / Surface

integration

Single enterprise platform

representation

In the Cloud


R E M E M B E R W H E NP r e - D i g i t a l

D I G I T I Z A T I O ND i g i t a l D a t a

E - B U S I N E S SO n l i n e B u s i n e s s

D I G I T A L - N A T I V EP A R A D I G M

S H I F T

MUSIC / ENTERTAINMENT

RECORDS, CASSETTES CDS, MP3S ITUNES SUBSCRIPTION STREAMING

WHY SHOULD THE CUSTOMER HAVE TO OWN OR RETAIN THE

MUSIC?

HEALTHCARE

FILING CABINETS DIGITAL RECORDS ONLINE HEALTHCARESENSOR IMPLANTS, PREDICTIVE

DIAGNOSIS

WHY SHOULD THE CUSTOMER HAVE TO GO TO THE DOCTOR?

AUTO

CARBURETORS FUEL INJECTION, HYBRIDS AUTOTRADER.COMDRIVERLESS CARS,

UBER / LYFT

WHY SHOULD THE CUSTOMERHAVE TO DRIVE THE CAR

OR THE BUSINESS NEED TO OWN TAXIS?

TRAVEL

PAPER SCHEDULING REAL TIME SCHEDULING EXPEDIA, TRAVELOCITY

WHY SHOULD THE BUSINESS NEED TO OWN HOTELS?

EXPLORATION AND PRODUCTION (E&P)

PAPER MAPSPETROTECH SOFTWARE, SEISMIC,

SCADA DIGITAL OILFIELD, RTOCs

IN

DU

ST

RY

DI

GI

TA

L

SH

IF

T

D I G I T A L B U S I N E S S M A T U R I T Y

DIGITAL E&P

?WHAT FUNDAMENTAL

ASSUMPTIONS SHOULD WE

BE CHALLENGING?9


The Difference between Digitization and Digitalization

GPS / Geofence

Digital Maps

Sensors & Actuators


Tesla Complex Coordination


Digital Shift in other industries…..

Transform: Age old human activity……

Groceries

Optimize:

• Waiting• Payments• Retail• Supply Chain• …• …

$600Billion

6


T H E T R A N S I T I O N T O N E W B U S I N E S S M O D E L S T H AT L E V E R A G E

D I G I TA L T E C H N O L O G Y T O C H A L L E N G E P R E V I O U S LY H E L D

A S S U M P T I O N S A B O U T T H E I N D U S T R Y

D I G I T A L S H I F T


It’s Not about enhancing existing business practices and technology

Today

Individual and instinct-driven

Incremental

Historical and operations-based

Siloed and fragmented

Multiple and proprietary

Speed of traditional IT

Decisions

Change

Insights

Data

Platform

Pace

8

Digital E&P will fundamentally change how E&P companies operate

Today

Individual and instinct-driven

Incremental

Historical and operations-based

Siloed and fragmented

Multiple and proprietary

Speed of traditional IT

Digital E&P

Collaborative and data-driven

Innovative

Real-time and asset-based

Bridges field, front office and back office

Common and open

Speed of Cloud

9

Decisions

Change

Insights

Data

Platform

Pace

T R A N S I T I O N T O N E W B U S I N E S S M O D E L S


The Four Pillars of Digitalization

CONNECTIVITYSMART

HARDWARE

BIG DATA

ANALYTICS

INTEGRATION

& CLOUD


Smart Hardware / Cloud – Collaborative Innovation

E&P in a box (Private Cloud)Running in your data center

Hybrid CloudLinked data centers (private fiber or over the Internet)

Software-as-a-Service - SaaSRunning in vendor data center


Install sensor network on

engines, transmissions1

Monitor operations against model &

Schedule maintenance jobs3Maintain equipment

at optimal intervals4

Create/update analytical

model of equipment wear2

Utilization-Based Maintenance is a clear example of smart hardware and big data analytics

at work


Very Manual with lots of Touch Points

Drilling Manager

Mud

CasingTools

Cement

BHA

Bits

Digital Well program – Plan- Design- Execute and Optimize

Digitize & Orchestrate Well Construction Process

iEnergy® CloudData Lake

Integration

Platform

DWP

1414

The Workflow

Business process management addressing process digitalization

The Report

Integrating the multiple phases of the well lifecycle process

The Engineering Microservices

Facilitating a lean and optimum use of

engineering calculation and its validation

How does the Digital Well Program™ solution

continuously optimize your well design process?


How the Digital Well Program™ Solution Works In Different Assets

Repetitive process,

factory drilling

Mature Field

Unconventional

Deepwater

Green Field

Complex process,

custom engineering

Full automation of

program based on

local parameters

Immediate

incorporation of

lessons learned &

accelerated learning

Cost and NPV

optimization

(DWOP, TL , Ops

BPs)

Risk management

and corporate

process

compliance

Audits and Safety

compliance

Management of

change, streamlined

communication,

during design and

execution phases

High Tier High Volume


Represent | Know | Affect

End to end suite of solutions (Tools/Technology) based on a single

subsurface/surface representation delivered on a single enterprise platform

SUBSEA

RESERVOIR

HQ

Delivering Asset Intimacy

Digital E&P Complex Coordination

Field Appliance Real-Time

Data Analytics

Land Drilling RIG / Production Facility

Offshore Drilling

RIG/Production Facility

SURFACE FACILITIES

AUTOMATION


Digitalization not about gadgets

Planet to Plate to Pore…

… on a single platform


The digital transformational journey is not one-size-fits-all.

but to create sustainable business value…You know the pieces…

they need to fit the unique you

SMART TRANSFORMATION

Digital

E&P

SMART

HARDWARE

CONNECTIVITY

COMMUNITIES

CLOUD &

INTEGRATION

BIG DATA

ANALYTICS


TargetBusiness Outcome

Understand Current State

Transform the Business

Digital Operating Model

Front/Back Office Integration

Organizational Effectiveness

Data Analysis

Define Problem Statement

Known Challenges

Strategic Benchmarking

Identify Digital Levers

Challenge Paradigms

Design Thinking

Customer Centric Design

Process Workflow

Data

People / Org

Increase in exploration success

Optimization of CAPEX

Reduction in OPEX/BOE

Improvement in EUR

Technology

SmartTransformsm

SmartVisionsm SmartDeploysm

Create Digital Vision

Where do we start?


Innovative Differentiators

Applied E&P High Science Capabilities

Domain and cross-domain

Expertise

Open and flexible

Platform

Cloud and Hybrid cloud integration

Standardized approach –SmartDigital

Data management

Insight

Big Data Analytics and Capabilities


High Potential Projects

2222

Exercise

22

In your opinion, how can new technologies transform the way things are donein E&P?

Tips:

Look at other industries for inspiration, ideas e.g., Amazon, Uber etc.

Highlight E&P-specific expertise and differentiation


Science

Innovation

Artificial Intelligence

Digitalization

Reduced TCO

Transformation

THANK YOU100 YEARS | 1919 - 2019

digital transformation in oil & gas › wp-content › uploads › 2019 › 03 ›...

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