IBM Asset Lifecycle Management Solutions for petroleum IBM Business Consulting Services

IBM Business Consulting Services
IBM Asset Lifecycle Management Solutions
for petroleum
Transforming asset lifecycle
Solutions for petroleum provides you
management processes
with industry-leading consulting to
Exploration and production (E&P)
support the development of a digital
companies commonly invest billions
work environment that is designed to
of dollars to develop and maintain
deliver important asset information
assets, putting a significant amount
and data to key decision makers in a
of capital in a constant state of risk.
usable format on demand. The work
And without a consistent, carefully
environment, which can be hosted by
planned approach to control costs,
IBM and can be tailored to your needs,
schedules and quality, E&P companies
helps reduce the development time
are unable to effectively manage their
and implementation costs that you
assets. Poor asset management can
would incur by creating a proprietary
lead to longer cycle times, decreased
solution. It also enables you to more
quality, increased safety risks, higher
quickly leverage technologies that
responsiveness with integrated asset
operating expenses and fewer
support efficient asset management,
management capabilities
reserves extracted during the asset’s
helping you optimize the return
total life. Based on a study conducted
on investment (ROI) from large
by IBM Business Consulting Services
expenditures.
Highlights
n Helps optimize project costs,
quality and cycle time by improving
contracting strategies
n Develops a blueprint for successful
asset management using industry
best practices
n Supports realtime global collaboration
with partners through a hosted solution
n Helps increase operational
n Leverages deep resources and
industry experience to provide a
comprehensive solution
in 2002, this inefficiency can equate to
a shortfall of 10 to 15 percent of total
Leveraging better contracting strategies
capital expenditures, with resulting
for greater efficiency
losses in the hundreds of million of
E&P companies measure the success
dollars. Consequently, leading E&P
of asset management strategy and
companies are looking for better
process execution by the impact that
approaches to more efficiently and
each has on an asset’s cash flow
cost-effectively manage large capital
throughout its lifecycle. Reducing
assets.
major project development costs
while improving quality and cycle
IBM Asset Lifecycle Management
time are all long-standing goals of
Solutions for petroleum can help your
the upstream industry. Yet factors
company reduce the costs and unlock
such as geographically dispersed
the business value of large capital
assets, a complex asset portfolio, a
assets. Asset Lifecycle Management
declining pool of skilled resources,
external influences and internal
Using industry best practices to build a
IBM’s vision for asset management
barriers make attaining these goals
successful asset management strategy
is to provide a hosted platform for
difficult. For example, assets may be
A well-documented strategy for
realtime collaboration and information
located in the extreme conditions
asset lifecycle management is vital
management throughout an asset’s
of the Arctic Circle, at the depths of
to an asset’s success and should
lifecycle for those companies that do
the Gulf of Mexico or in politically
include a change-response plan for
not want to operate the system on
unstable countries. And traditional
risk, contracting and performance
their own platform. In this environment,
asset management practices have
management. Asset lifecycle
global business partners are
not leveraged existing knowledge,
management for petroleum can
linked across the value chain and
resources and materials across
develop strategies for assets that
critical decisions are made based
projects due to siloed operating
are consistent with your corporate
on accurate, timely information.
procedures. Consequently,
policies and that can help improve
To deliver this highly specialized
E&P companies need flexible,
shareholder return. We can fuse
solution, IBM has actively invested in,
sophisticated asset management
industry best practices and technology
developed and managed industry-
strategies that allow them to
with your unique business processes
leading resources, including people,
collaborate effectively, leverage
and methodologies to create an asset
processes and IT tools.
existing resources and quickly adapt
lifecycle management solution that
to changing business needs to
uses key performance indicators to
Improving operational responsiveness
develop assets that meet or exceed
enforce business strategy objectives
through integrated capabilities
first year and lifecycle operability
based on consistent management and
In today’s challenging exploration
targets.
monitoring. The solution also provides
and production environment—where
the strategy and tools designed to
factors ranging from environmental
IBM Asset Lifecycle Management
responsibly manage environmental,
conditions or regulations to political
Solutions for petroleum can help
health, safety and security risks.
unrest to limited infrastructure
you increase collaboration both
resources in various regions
internally—enterprisewide—and with
Providing a hosted solution for realtime
throughout the world can impact day-
contractors to improve contracting
global collaboration with partners
to-day operations—E&P companies
strategies. From better coordinating
To reduce expenses and improve
need the ability to sense and
individual project teams to managing
shareholder returns, E&P companies
respond with speed to opportunities
intercompany relationships with
should cut asset development costs
and change. And as a result, many
contractors that provide engineering
through better collaboration with
companies are turning to collaborative
services and support for drilling
partners and service companies
asset management models. IBM,
operations, our experienced
that are spread across the globe. A
in partnership with a major global
professionals can help you put the
powerful information technology (IT)
E&P company, has developed a
tools and processes in place that are
solution, which supports an asset
working prototype to demonstrate
needed to drive down costs, improve
management strategy based on
the value of the collaborative asset
quality, reduce facility downtime and
information management and electronic
management platform. This prototype,
optimize production. Proficient project
collaboration, can enable the strategy
which is the foundation for the asset
and resource management can also
and process execution that are needed
lifecycle management for petroleum
help you decrease the development
to improve and sustain superior
solution, is based on an open, flexible
schedule to hasten the time to
business performance.
infrastructure that is designed to
production.
enable companies to leverage their
Table 1: Potential development cost savings*
preferred software tools for project
management, including existing
Computer-Aided Design (CAD)
applications, 3-D and 4-D viewers,
and document management software.
IBM Asset Lifecycle Management
Solutions for petroleum provides a
collaborative asset management
Estimated range
of benefit
Complexity of
value capture
Construction and design costs
2 to 6 percent
Low
Cycle time
5 to 30 percent
Medium
Improved design/best practice application
5 to 30 percent
Medium
Knowledge management/decision making
Large
High
* Based on a study conducted by IBM Business Consulting Services in 2002.
•
solution that integrates with your
business partners’ systems to deliver
software services in a securityrich and resilient environment. The
hosted asset lifecycle management
Value source
•
Make and act upon decisions across
you with a comprehensive asset
the value chain in realtime, based
management solution from a single
on external drivers such as political
source. Moreover, our track record in
unrest or oil price changes
the petroleum industry demonstrates
for petroleum solution model is
performance proactively over the
usage-based, so you pay only for
entire lifecycle, even across value
the service levels that you use, and
chain partners
you can easily scale the solution
•
up or down as business needs
dictate. The benefits of asset lifecycle
management are significant and can
potentially equate to opportunities in
the hundreds of millions of dollars by
enabling you to do the following:
•
Share information among business
our ability to successfully fuse
Monitor and manage asset
business processes, data and
technology into solutions that deliver
results. Asset lifecycle management
for petroleum can provide you with
Adjust IT costs based on software
the right people and technology at
usage and organizational needs.
the right time to help your organization
manage its large capital assets.
Relying on the deep experience of a
And this can positively impact the
global team
At IBM, we combine a wealth of global
resources, including petroleum industry
experts, cutting-edge technology
management and performance of
an asset to drive increased returns
and cash flows. By relying on
IBM’s experience and end-to-end
and proven methodology to provide
partners across geographically
procurement and construction
companies on complex deepwater
developments to increase asset
quality and improve cycle time
•
Use e-business collaboration
capabilities to share resources
virtually across geographically
diverse asset bases without physical
travel
Cash Flow
venture partners and engineering,
_
Time
Collaborate in realtime with joint
Decommision
•
+
Operation
timely data
Commision
comprehensive, accurate and
Procure & Construct
Make better decisions based on
Design
•
Preproject
disparate projects and assets
capabilities, you can improve your ROI
For more information
and gain a competitive advantage
To learn more about IBM Business
through efficient management of
Consulting Services and IBM Asset
important large capital assets.
Lifecycle Management Solutions for
petroleum please contact your IBM
Relying on the deep experience of a
sales representative, or visit:
global team
At IBM, we combine a wealth of
global resources, including petroleum
industry experts, cutting-edge
technology and proven methodology
to provide you with a comprehensive
asset management solution from a
single source. Moreover, our track
record in the petroleum industry
demonstrates our ability to successfully
fuse business processes, data and
technology into solutions that deliver
results. Asset lifecycle management
ibm.com/bcs
© Copyright IBM Corporation 2004
IBM Global Services
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Printed in the United States of America
02-04
All Rights Reserved
IBM, the IBM logo and the e-business logo
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Other company, product and service names
may be trademarks or service marks of others.
References in this publication to IBM products
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make them available in all countries in which
IBM operates.
for petroleum can provide you with
the right people and technology at
the right time to help your organization
manage its large capital assets.
And this can positively impact the
management and performance of
an asset to drive increased returns
and cash flows. By relying on
IBM’s experience and end-to-end
capabilities, you can improve your ROI
and gain a competitive advantage
through efficient management of
important large capital assets.
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