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Copyright © 2005, SAS Institute Inc. All rights reserved.

ConocoPhillips Scandinavia ASHow ConocoPhillips improves its production processes with the SAS Knowledge Infrastructure

Magne Bakkeli, SAS Institute - 18.05.06

Copyright © 2006, SAS Institute Inc. All rights reserved. 2

ConocoPhillips and the Good to Great (G2G) Programme1

The Business Needs: Maximized and Regular Production2

The Knowledge Infrastructure for More Efficient FieldOperations3

Smart Applications = From Raw Data to Smart Decisions4

5 Topics

ConocoPhillips’ Benefits with SAS5


ConocoPhillips and the Good to Great (G2G) Programme


ELDFISKEKOFISK TOR EMBLA

Conocophillips is a Major Playerin the North Sea

Employs 2230 employees in Norway and the UK

600-1200 persons offshore at any given time

18 platforms in operations, 12 closed

Production per day:• Oil: Ca. 390 000 bbls• Gas: Ca. 400 mill. Scf


From Good to Great –The Greater Ekofisk Process Improvement Initiative


The G2G Initiative & ExpectationsInclude Drastic Improvements on the Bottom Line

Productionefficiency almost

1% higher

OPEX ca200mmNOK

lower

Higherreturn

oninvestment

Aperformance management

culture

Each individualhas cleargoals and

responsibilities

Timely decision-making based

on betterinformation

Each individualdrives their ownimprovements

Clearperformancemeasures andfollow up at

all levels

OOC & ODCare central to

onshore/offshorework

Activity drivenby integratedplanning andvalue creation

Focus onoverall business

goals ratherthan localpriorities

Clear plansfor further

developmentof the

organisation


The Business Needs: Maximized and Regular Production


The Goal: Maximize and Regulate Hydrocarbon Production through Better Decision Support


The Fixers areHeroes.

Defects are not eliminated effectively.

Don’t have time to improve

The Fixers areHeroes.

Defects are not eliminated effectively.

Don’t have time to improve

Problems and potential upsets areidentified upfront.

Warnings are actedupon and downtimeavoided.

Problems and potential upsets areidentified upfront.

Warnings are actedupon and downtimeavoided.

Uptime

The Capabilities: From Fail & Fix to Predict & Prevent

Maturity


???

The Needs: Business Intelligence Throughout the Organisation

Finance:Integrated planning,

Forecasting capabilities, Compliance/audit trail

Platform Managers:Comprehensive daily morning

report, Detailed production, constraints and HSE reports

Production:Early warnings and alerts,

Detailed production reports, Production optimization,

Onshore Operating Centre:Early warnings and alerts,

Integrated plans

IT Operations:User management, fast

development of new reports, cost of operations

Executives:Scorecards, trends, High level

reports for all disciplines

Planning:User driven reporting and analysis, Planning data availability, Forecasting

capabilities

Maintenance:Maintenance optimization,

Integrated plans

Logistics:Logistics optimization,

Forecasting, Integrated plans

Modifications, drilling & GGRE:

User driven reporting and analysis, Planning data

availability


The Catalyst: Onshore Operating CentreBridge Disciplines; Insight Through

Collaboration Instead of Travel

Daily Production Monitoring

Planning & Scheduling

Logistics

Drilling & Well Service

Maintenance

“Time to Intelligence” is business critical for the daily offshore operations

“Time to Intelligence” is business critical for the daily offshore operations


Business Improvement Initiative and the Onshore Operating CentreRequires One Coherent Infrastructure

to Support Decision Making

Knowledge InfrastructureSmart Applications

From Raw Data to True Collaboration and Fact-based Decision Making

From Raw Data to True Collaboration and Fact-based Decision Making

Build OOC: bring people and data together, collaborate

Improve Business Processes: do things differently and smarter

Build OOC: bring people and data together, collaborate

Improve Business Processes: do things differently and smarter


The Knowledge Infrastructure for More Efficient FieldOperations


80-90% of the Data Volume is “Non-SAP”

“We have so much data - what we need is information”Lars Christian Dahl, ConocoPhillips, in conjunction with work in The Onshore Operation Centre


The Knowledge Infrastructure Supports All Decision Making at CoP

“The Knowledge infrastructure will provide right-timeinformation that can be trusted at all times, by utilizing common business definitions and rules to make all data and information seem to be from one data source.”

Pål Navestad, Project Manager, ConocoPhillips


Knowledge InfrastructureEnables General Reporting and Custom Business Applications

Small tables

SAP& BW

PI

NPAS

Other

Data sources Knowledge Infrastructure

Tech. metadata: data and user mngt

Business metadata: Adding knowledge, business rules ++

Receiving and quality assurance of data

Reporting and interfaces for other jobs

Common functions: Security, Comments, Decision Scenarios, Dimensions, Self-Service Analytics

Action logs

CommentsAlarms & alerts

Smart Applications

Integrated planning

Performance Mngmt

Incidents & AccidentsPredictive Prevention

Production optimization

Daily Op Reporting

Maint. optimization

Datamart Cube


DataIntegrationQuality

SAPMaintenanceLogisticsBW (Financial)

MSExcelProject

HistoriansPIIP21Honeywell

Real-TimeHoneywellSiemensABB

Well/NetworkNPASREOHysys

OtherDIMSPrimaveraOREDA

Raw Data

DataAggregation

Information

From Raw Data to Information


SAPMaintenanceLogisticsBW (Financial)

MSExcelProject

HistoriansPIIP21Honeywell

Real-TimeHoneywellSiemensABB

Well/NetworkNPASREOHysys

OtherDIMSPrimaveraOREDA

Raw Data

Information

Knowledge

From Information to Knowledge


Real-time Data Integration& Aggregation

Currently reading data from more than 30 sources; Oracle, SAP, PI, NPAS, Excel, SQLServer etc.

Knowledge Infrastructure is about reading data from various data sources and connect them, but not necessarily store the resulting data.

The various data sources are integrated together trough mapping tables that connects the different database keys together.

Data Integration Studio is used in the process of gather data and to document how this is done.


The Knowledge Infrastructure to Support all Decision Making

Common information base for everyone, providing the ability to utilize data that used to be cumbersome to get access to.• History and data quality procedures• Data access and security• Well documented processes and reduced person

dependency.

Established a common reporting framework where super users easily can share reports and information with others.• Data drill-down• Advanced statistical analysis• Self-service reporting


Metadata Enables Transparency and Source Independence

The Infrastructure consists of a common set of technical metadata throughout the process from data integration to end-user utilisation, enabling full traceabilityThe data is presented transparently to the user through Information Maps, which hides complexity for the end user

Reports is built and made available in Web Report Studio. In addition, the portal and scorecards are used as top-level navigation to key reports.

The infrastructure builds on already established Active Directory security procedures.


One Storage for Business Rules & DefinitionsBusiness definitions• Text to explain a business term,

i.e what gross and net production signify (SPM)

Business rules• The method to calculate from

gross to net production• Often a combination of text,

formulas and numeric values (SPM, ETL)

Data quality rules • Valid values, treatment of

missing (ETL)

Alerting rules • Definitions of alerts and

thresholds for an indicator (SPM, ETL, + other sources)


Seismic Analysis &

Uncertainties Reduction

Subsurface Data

Quality

Predictive Production

Profiling

InvestmentProfiling & Simulation

Scientific GeologicLayer

Segmentation

CommercialIntelligenceCommercialIntelligence

SubsurfaceIntelligenceSubsurfaceIntelligence

Operational & Asset

Intelligence

Operational & Asset

Intelligence

Investment& FinancialIntelligence


Oil & GasUpstream

IntelligenceSolution

Incidents & AccidentsPredictivePrevention

Planning,Scheduling

& Control for Operations

MaintenanceOptimization

ProcessIntelligence

Control

KnowledgeProcessMgmt.

AssetPortfolio& Risk

Management

Operational Financial Mgmt.

& Investment Control

Scorecarding&KPIs

Activity BasedMgmt. Corporate

Compliance

Operational & Commercial Risk

Mgmt.

DemandForecasting

Event Prediction

Logistic Planning

Scheduling & Control

Value Chain Cost

Mgmt.

1st Phase Smart Applications to Solve Specific Challenges

2

Prediction and Prevention of Negative Events-Finding patterns to avoid potential problems-Creating alerts and problem reports to solve problems

3

Integrated Resources Planning & Scheduling-Integrating planning intelligence and information from all domain areas, departments, processes and systems-Execution control and adaptation

1

Strategic Performance Management- Structured performance reporting and metrics - Prioritising actions where needed


1. Strategic Performance Management: KPIs & MCRS


MCRS: Complete Performance Management ProcessAccurate Top-Down

Approach: fact-based forecasts and predictions

Consistent Plans and consistent targets (KPIs)

Consistent, accurate and right-time control (KPI metrics and measures)

Comprehensive right-time Reporting – ability to detail and drill-down

Alarms

Alerts

Consistent right-time re-scheduling and action distribution


KPI & MCRS: Defines and CommunicatesStrategies and Plans

Scorecards help create complex and consistent strategies throughout hierarchies, disciplines and geographies

Visualisations helps communicate strategies and plans

The diagrams also shows the relationships between indicators


KPI & MCRS: Strategic and Operational KPIswith Actuals and Targets

Supports corporate, strategic KPIs

Supports highlyoperationalindicators at departemental levels

Used bothonshore and offshore


KPI & MCRS: Performance Review Meetings Standardized to Ensure Structure and Consistency

Portal pages to support MCRS meetings at all levels in theorganisation

Includes Terms ofReference, relevant KPIs and key reports.

The end-user kiosk for information


KPI & MCRS: Performance Review Meetings Actions for Non-performing KPIs are Logged


2. Prediction and Prevention of Negative Events


Alarms and Alerts: Alarm Workflow

Alarm or alertDecision

alternative(s)

Action log

Comment

Portal” new problem”

Alarm generator


A rule set A rule graph Diagnostics - early warning

Alarms and Alerts: Predictive Agent System to PreventUnexpected Shutdowns


1st Step: Making Production Data EasilyAccessible


Alarms and Alerts: Improves and Revitalises Alarming

Prediction• Simple thresholds• Bottleneck detection• Pattern recognition• Data mining

Alarms by using:• Alarms based on role• Sent by portal, SMS or email


3. Integrated Planning & Scheduling


Planning & Scheduling: Integrated Planning Defined

“Integrated planning refers to the merging of a wide variety of planning systems into a single system for the purpose of identifying dependences between the systems and finding ways to optimise the planning, which can be affected by many different parameters”.


Planning & Scheduling: Integrated Operational Planning and Execution

Aggregation of planning intelligence from different planning systems• SAP Maintenance, SAP Logistics, MS Projects, Primavera,

DIMS, MS Excel, other.

One single, integrated operational plan• for all disciplines and geographies, with different time-

horizons from long to short term

An integrated performance management structure • supported by integrated planning and cost management

processes

Ability to predict and forecast top-down • in non-detailed segments of the plan and compute many

scenarios and rank them for optimal performance


Planning & Scheduling: Linked Reports Improve the Planning Process


Planning & Scheduling: Meetings Standardized to Ensure Structure & Consistency


Planning & Scheduling: More Efficient Planning and Control

Integrated Planning• Combine mutual characteristics and dependancies between jobs• Equipment without maintenance plans• Equipment that is repeatable in several maintenance jobs

Internal and External Reporting• Norwegian Government• Planned vs. Actual• Reports from tests

Correlation and dependancies• Which jobs are related and dependent on each other?• Most efficient re-routing with emerging problems• Full view gives better utilization of SAP


Seismic Analysis &

Uncertainties Reduction

Subsurface Data

Quality

Predictive Production

Profiling

InvestmentProfiling & Simulation

Scientific GeologicLayer

Segmentation

CommercialIntelligenceCommercialIntelligence

SubsurfaceIntelligenceSubsurfaceIntelligence

Operational & Asset

Intelligence

Operational & Asset

Intelligence



Oil & GasUpstream

IntelligenceSolution

Incidents & AccidentsPredictivePrevention

Planning,Scheduling

& Control for Operations

MaintenanceOptimization

ProcessIntelligence

Control

KnowledgeProcessMgmt.

AssetPortfolio& Risk

Management

Operational Financial Mgmt.

& Investment Control

Scorecarding&KPIs

Activity BasedMgmt. Corporate

Compliance

Operational & Commercial Risk

Mgmt.

DemandForecasting

Event Prediction

Logistic Planning

Scheduling & Control

Value Chain Cost

Mgmt.

5

Mapping and Optimization of the Physical Process- Optimising the production process

4

Maintenance Optimization- True Condition-Based maintenance- Safety- and Cost-Based Corrective Maintenance

5

Mapping and Optimization of the Physical Process- Optimising the production process

Additional Smart Applications


ConocoPhillips’ Benefits with SAS


Reports & Analytics

Prediction& Alerting

ScorecardsStrategic, Tactical and Operational Usages

Analyze

Choose

DecisionAlternatives

Design

Report Out

Report In

Distribute

Strategize

PlanConsolidate Drive

MonitorEscalateDetect

Knowledge Infrastructure

Shared Data & Metadata


Efficient Decision Support Enables ContinousImprovements

Timely decision-makingbased on betterinformation

Clear performancemeasures and follow up at all levels

Activity driven by integrated planning and value creation

Production efficiencyalmost 1% higher

Declining slopewithout systems

support

Continousimprovements based

on qualityinformation


The Daily Production Efficiency is More Stable and on a Higher Level


The Business Value: Payback in Under 1 Year

Proven business value Historical success since 2001 in using SAS for indicators and reporting before the Data to Decisions projectExample: Removal of 20% of costs and man-hours in preventive maintenance

High estimated future business value

G2G is set to save the Greater Ekofiskoperations NOK 1.4 Bn annualised -dependent upon efficient systems to deliver the benefits. ROI calculations for this project shows payback in under 1 year.

http://www.mckinseyquarterly.com/ar_g.aspx?ar=318&L2=21&L3=114

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