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Overview and Highlights of the SAP for Oil &

Gas Solution
Ken Evans, Senior Director, Oil & Gas Industry Solution Management, SAP Labs
Stphane Lauzon, Director Oil & Gas IBU, SAP
Jason Palmer, Oil and Gas Industry Principal, SAP Americas
A collaboration of:
SAP for Oil & Gas

Jump Start
Workshop

October 23, 2011
Ken Evans, Sr. Director
Stephane Lauzon, Director
Jason Palmer, Industry Principal
2011 SAP AG. All rights reserved. 2
Run Better with SAP
Legal disclaimer
All information contained in this presentation is provided under NDA
The information in this document is confidential and proprietary to SAP and may not be disclosed without the
permission of SAP. This document is not subject to your license agreement or any other service or subscription
agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related
presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation
and SAP's strategy and possible future developments, products and or platforms directions and functionality are all
subject to change and may be changed by SAP at any time for any reason without notice. The information on this
document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This
document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied
warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational
purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this
document, except if such damages were caused by SAP intentionally or grossly negligent.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
2011 SAP AG. All rights reserved. 4
Todays Agenda
Welcome & Safety Minute 10:00am Ken Evans
Overview & & Participant Objectives 10:05am Ken Evans
Oil & Gas Solution Portfolio Overview 10:20am Ken, Stephane,
Jason
Break 12:00pm
ORM Overview 12:30pm Mark Pyatt
Channels of Influence Oil & Gas Advisory Council 13:00pm Ken Evans
Services Portfolio Hub, RDS, FBS 12:30pm Dirk Rebman
Dirk Williams
Conference Overview and Meet the Experts 14:00pm
Comments & questions: ken.evans@sap.com
SAP.com/oil-and-gas
SAP for Oil & Gas
Innovations
Drivers Value
Execution Summary
Run Better
2011 SAP AG. All rights reserved. 6
What does run better mean for oil & gas?
Reduce incident rate
Improve return on
capital employed
Reduce finding cost
($/BOE)
Improve production
(BOE)
Reduce operating
costs ($/BOE)
Reduce capital
development cost
($/BOE)
Reduce DSO
Improved on-time
delivery
Drivers Innovations Execution Run Better Value Summary
Run better
KPIs
Examples
Valero
Leading oil field
service company
Surgutneftgaz
Bharat Petroleum
Chevron
2011 SAP AG. All rights reserved. 7
The best are leading the way
25% 4% Significant
Reductions in
spare parts
inventory and
stock outs
reduction in
energy usage
found
A leading oil field
services company
Increased
asset
utilization

42%
reduction in
overtime within
refinery
50yr
strategic planning
horizon integrated
to budgeting
process

Drivers Innovations Execution Run Better Value Summary
Run better
KPIs
Examples
Valero
Leading oil field
service company
Surgutneftgaz
Bharat Petroleum
Chevron
Content redacted.

Please contact your SAP Account Team for additional
insight/details
2011 SAP AG. All rights reserved. 8
In-memory at Surgutneftegas
RQ xxxx (YY/MM)
Company or Organization
Surgutneftegas

Headquarters or Location
Russia

Industry
Oil and Gas

Products and Services
Oil products

Employees
> 100.000

Revenue or Budget
US$ 19 Billion

Web Site
http://www.surgutneftegas.ru/en/

Implementation Partner
SAP
The companys business issue
Ensure in-time delivery of needed
material and avoid out-of stock
situations
Determine value of stock
Stock analysis and stock forecasting for
entire range of materials (~ 140.000)
Existing solution with long processing
time (>12 hours)

The resolution
Stock analysis and forecasting based
on HANA

The result
Significant reduction of reporting time
(several seconds for single material,
couple of minutes for the entire stock
overview and forecasting)

We use about 140,000 different materials, which creates several million records per year which have
to be analyzed to determine which materials should go to which locations. With SAP in-memory
computing technology we can manage the provisioning and delivery of material and technical
resources. I am convinced that this technology has a great future.
Rinat Gimranov, CIO; Surgutneftegas
BW reporting
Load 10 hours
Calculation 2 hours

Refresh 10-20 sec

HANA reporting
Adhoc query for a single
material < 5 sec
Calculation for 5 months
< 20 minutes
Drivers Innovations Execution Run Better Value Summary
Run better
KPIs
Examples
Valero
Leading oil field
service company
Surgutneftgaz
Bharat Petroleum
Chevron
2011 SAP AG. All rights reserved. 9
Headquartered in Mumbai,
Bharat Petroleum
Corporation Ltd. (BPCL) is
Indias second-largest oil
company.
BPCL refines and markets
petroleum products. When
the company decided to
streamline its business
processes and leverage self-
service technology to
empower its employees, it
chose SAP software.
Implementing the SAP
solution at 456 locations has
enabled the company to
manage growth effectively
and transform its HR
operations.
Drivers Innovations Execution Run Better Value Summary
Run better
KPIs
Examples
Valero
Leading oil field
service company
Surgutneftgaz
Bharat Petroleum
Chevron
Content redacted.

Please contact your SAP Account Team for additional insight/details
2011 SAP AG. All rights reserved. 10
Analytics at Valero
RQ xxxx (YY/MM)
Company or Organization
Valero

Headquarters or Location
San Antonio, Texas, US

Industry
Oil and Gas

Products and Services
Oil products

Employees
21,000

Revenue or Budget
US$ 100 Billion

Web Site
http://www.valero.com

Implementation Partner
SAP
The companys business issue
IT built every web page, generated all
reports, and handled each security
request

The resolution
Implemented a strong business process
platform with SAP HANA

The result
Greater visibility to information with
overhauled corporate portal
Improved business analysis with
support for drill-down capabilities
Dashboards to replace spreadsheets
for decision making one version of the
truth across the enterprise
In the past, Valeros IT built every Web page, generated all reports, and handled
each security request. Once we had a strong business process platform in place, we wanted to
enable business users to be more self-sufficient.
Navaki Navyar, Vice President, Operations Systems Development; Valero Energy Corporation
US$ 120
million
annual energy savings
in 2009 goal is US$
200 million in 2010
44% of all security requests
processed within 30
minutes
0.15% Total IT spend as % of
revenue
Drivers Innovations Execution Run Better Value Summary
Run better
KPIs
Examples
Valero
Leading oil field
service company
Surgutneftgaz
Bharat Petroleum
Chevron
2011 SAP AG. All rights reserved. 11
Valero Video
Drivers Innovations Execution Run Better Value Summary
Run better
KPIs
Examples
Valero
Leading oil field
service company
Surgutneftgaz
Bharat Petroleum
Chevron
2011 SAP AG. All rights reserved. 12
Chevron has major
operations in the worlds
most important oil & gas
regions.
They are leaders in working in
extremely difficult
environments such as
ultradeep water. They are a
leader in refining, fuels &
lubricants. Chevrons interests
range from chemical
production & mining to energy
research and nanoscience.
Better end user adoption and reliability during
forecast process
Improved forecast cycle times
Increased productivity
Portfolio analysis reduced from weeks to hours
Initial 3-year budgeting processes
grew to include 50-year strategic
planning process
300+ Users
25+ countries
Drivers Innovations Execution Run Better Value Summary
Run better
KPIs
Examples
Valero
Leading oil field
service company
Surgutneftgaz
Bharat Petroleum
Chevron
Content redacted.

Please contact your SAP Account Team for additional insight/details
2011 SAP AG. All rights reserved. 13
Mobility at an oil field services company
Company or Organization
An oil field services company

Headquarters or Location
Confidential

Industry
Oil and Gas

Products and Services
Oil Field Services

Employees
Confidential

Revenue or Budget
> US$ 5 Billion

Web Site
Confidential

Implementation Partner
SAP
The companys business issue
Low asset utilization rates and high DSO
on jobs resulting from an inability to
efficiently track assets.

The resolution
Co-Innovation of customer and SAP on
how to increase efficiency and reduce
costs by improving key business
processes using a Green Field Innovation
approach.

The result
Standardized workflow within SAP creating
a centralized process
Enabled mobile computing in the field to
deliver business to customers in real time
Enabled tighter compliance to transaction
and master data for key process areas
Realigned processes in the field which
allowed HAL to do business Better with
clients
Drive DSO to less than 1 Day by utilizing
Mobile billing at Job Sites
Increase Asset Utilization by 4%

We are focused on capturing efficiencies through our supply chain and in the field through the
reinvention of our service delivery service platform...
Chairman, President and Chief Executive Officer
4% Increased asset
utilization
< 1 day DSO

Drivers Innovations Execution Run Better Value Summary
Run better
KPIs
Examples
Valero
Leading oil field
service company
Surgutneftgaz
Bharat Petroleum
Chevron
2011 SAP AG. All rights reserved. 14 Confidential
Innovation drivers in the oil & gas industry
Preparing for the energy & technology revolutions
Innovation
drivers
Shifting demand &
supply patterns
Changing
regulations
Increasing
volatility
Digital oilfield
Energy
conservation
Energy policy changes
Volatile prices and
margins
Increasingly complex
assets

Energy
Revolution
Consumption
Expectations
Mobility
Big data
Cloud

Technology
Revolution
Unprecedented need for innovation
Technology
revolution
Energy revolution
Mobility, big data,
& cloud
People & devices
Drivers Innovations Execution Run Better Value Summary
2011 SAP AG. All rights reserved. 15 Confidential
Geographical
match of supply
and demand
Evolving energy
markets, e.g. gas
High growth rates
in emerging
countries
Shifting demand & supply patterns
Drivers Innovations Execution Run Better Value Summary
Innovation
drivers
Shifting demand &
supply patterns
Changing
regulations
Increasing
volatility
Digital oilfield
Energy
conservation
Technology
revolution
Energy revolution
Mobility, big data,
& cloud
People & devices
2011 SAP AG. All rights reserved. 16 Confidential
Changing regulations
Fragmented risk
management
systems
Changing risk
landscape
Financial crisis
impact
Drivers Innovations Execution Run Better Value Summary
Innovation
drivers
Shifting demand &
supply patterns
Changing
regulations
Increasing
volatility
Digital oilfield
Energy
conservation
Technology
revolution
Energy revolution
Mobility, big data,
& cloud
People & devices
2011 SAP AG. All rights reserved. 17 Confidential
Increasing market volatility
Continuous
resource and
asset optimization
Changing NRH and
IOC relationship
Transforming
global business
operation models
Run Better Drivers Innovations Execution Run Better Value Summary
Innovation
drivers
Shifting demand &
supply patterns
Changing
regulations
Increasing
volatility
Digital oilfield
Energy
conservation
Technology
revolution
Energy revolution
Mobility, big data,
& cloud
People & devices
2011 SAP AG. All rights reserved. 18 Confidential
Renewables and energy conservation
Increasing use
of biofuels
Competition from
alternative
energies
Innovation in
energy
efficiency
Run Better Drivers Innovations Execution Run Better Value Summary
Innovation
drivers
Shifting demand &
supply patterns
Changing
regulations
Increasing
volatility
Digital oilfield
Energy
conservation
Technology
revolution
Energy revolution
Mobility, big data,
& cloud
People & devices
2011 SAP AG. All rights reserved. 19 Confidential
Digital oilfield
Integrated
operations models
Integrated risk
management
Tight gas and now
tight oil
developments
Drivers Innovations Execution Run Better Value Summary
Innovation
drivers
Shifting demand &
supply patterns
Changing
regulations
Increasing
volatility
Digital oilfield
Energy
conservation
Technology
revolution
Energy revolution
Mobility, big data,
& cloud
People & devices
2011 SAP AG. All rights reserved. 20 Confidential
IT is changing the way we work and live!
Connected
Flexible/
Unstructured
People
collaboration
Compliance
Stability
Business
collaboration
PEOPLE & DEVICE
PROCESS WORLD
PEOPLE
150 billion liters of beer produced
annually
24 industries
32,000 car engines per day
2.5 billion utility bills per
year
109,000 SAP
customers
25,000,000
members
600,000,000
members
6,000,000,000
mobile subscribers
2 million Tons of
Chocolate
Run Better Drivers Innovations Execution Run Better Value Summary
Innovation
drivers
Shifting demand &
supply patterns
Changing
regulations
Increasing
volatility
Digital oilfield
Energy
conservation
Technology
revolution
Energy revolution
Mobility, big data,
& cloud
People & devices
2011 SAP AG. All rights reserved. 21 Confidential
Convergence of mobility big data and cloud
Mobility
Smartphones outsell
PCs by 2013, mobile
devices will be the
primary method of
internet access
worldwide
Big Data
Data volume for
enterprise applications
is doubling every 18
months
Cloud
80% of new software
offerings this year will
be available as cloud
services
We will deliver evolutionary and breakthrough innovations based on our
key technologies in the areas of mobile, analytical, cloud and in-memory
computing.

Jim Hagemann Snabe, Co-CEO SAP
Drivers Innovations Execution Run Better Value Summary
Innovation
drivers
Shifting demand &
supply patterns
Changing
regulations
Increasing
volatility
Digital oilfield
Energy
conservation
Technology
revolution
Energy revolution
Mobility, big
data, & cloud
People & devices
2011 SAP AG. All rights reserved. 22
SAPs value
SAP helps to maximize return capital employed, ensure
operational continuity, performance and compliance
Restore and rebuild
trust for hydrocarbon
production & use
SAP unique capability
SAP unique capability
SAP unique capability
Manage full capital
project lifecycle
integrated with cash flow
Manage operations
performance
Manages the
convergence of
production, maintenance,
engineering and
financials, at all levels of
the enterprise
Closed loop management
& control of capital from
long term strategic cash
flow planning, project
inception, completion and
performance

Provides the framework
and solutions required to
proactively deal with the
current and pending
regulations from recent
incidents

Solution Portfolio
for Oil & Gas
Industry Segments
Served
Operations
Supply Chain
Sales
Finance
Human Resources
Information
technology
Drivers Innovations Execution Run Better Value Summary
2011 SAP AG. All rights reserved. 23
With an Industry Solution Portfolio that
brings value across the entire oil & gas value chain
Exploration Production
Supply &
Trading
Refining/
Manufacturing
Transport
& Trading
Marketing &
Distribution
Retail
Human Resources
Finance
Information Technology
Supply Chain
Sales
Operations
Drivers Innovations Execution Run Better Value Summary
SAPs value
Solution Portfolio
for Oil & Gas
Industry Segments
Served
Operations
Supply Chain
Sales
Finance
Human Resources
Information
technology
2011 SAP AG. All rights reserved. 24
SAP solutions for oil & gas
Planning, Building, and
Commissioning Assets
Operational Risk Management
Optimized Asset Operations
and Maintenance
Manage Indirect Materials &
Services Procurement
Operational Performance
Management
Energy & Environmental
Resource Management
Operations
HR & Payroll
Shared Services Framework
Talent Management
Human Resources
Manage Financial Performance
Accelerated Financial Close
Financial Shared Services
Financial Value Chain
Manage Treasury and Financial
Risk
Manage Risk and Compliance
in Commodity Industries
Manage Effective Venture
Partnerships
Sustainability Reporting &
Analytics
Finance
Retail Network Operations
Loyalty Management
Sales
Supply Chain
Insight and Analytics
Enterprise Information
Management
IT Operational and Service
Excellence
Business Integration
Business User Productivity
Information Technology
Integrated Trading and
Scheduling
Primary Distribution
Secondary Distribution and
Terminal Management
Human
Resources
Sales
IT
Supply
Chain
Finance
Operations
Industry Core
Functions
Focus on
Operational
Efficiency
Drivers Innovations Execution Run Better Value Summary
SAPs value
Solution Portfolio
for Oil & Gas
Industry Segments
Served
Operations
Supply Chain
Sales
Finance
Human Resources
Information
technology
2011 SAP AG. All rights reserved. 25
SAP solutions for oil & gas
for operations
SAP helps collaboratively and sustainably manage the capital assets full lifecycle for
best returns with enterprise wide operations and asset performance management
spanning the full lifecycle, from inception to retirement, resulting in maximized returns
on capital employed
Key Business Processes Enabled Key benefits
Planning, Building, and Commissioning
Assets
Operational Risk Management
Optimized Asset Operations and
Maintenance
Manage Indirect Materials & Services
Procurement
Operational Performance Management
Energy & Environmental Resource
Management


Maximized return on capital employed
Reduced operational risks and improved
compliance
Maximum capital portfolio performance
and efficient project execution
Improved asset integrity and reduced
downtime




Drivers Innovations Execution Run Better Value Summary
SAPs value
Solution Portfolio
for Oil & Gas
Industry Segments
Served
Operations
Supply Chain
Sales
Finance
Human Resources
Information
technology
2011 SAP AG. All rights reserved. 26
Operational Performance Management for
Upstream
Description - Faced with the need to extract more
hydrocarbons from existing production fields, upstream
companies must integrate different functional sources of
information to provide a holistic view of the performance of
their operations and determine the best operational plan.
Current limitations - Difficult to react quickly to
operational and market changes. Difficult to integrate
technical and business computing systems to provide a
complete operational view of the producing asset. Limited
visibility across the production network to all activities
(physical performance, planned maintenance, workovers,
etc.) that impact delivery.
Value prop - Interrogate historical operational conditions
by rapidly accessing production engineering repositories
and processes. Faster and more accurate forecasting for
operational production key metrics to determine the
optimal plan.
Outcome opportunity - Improvement of operational
efficiency & increased production from existing assets.
Proof point - Improvement of production throughput by
1-2%.
Pre-requisite - SAP OPM for Upstream implemented.
Drivers Innovations Execution Run Better Value Summary
SAPs value
Solution Portfolio
for Oil & Gas
Industry Segments
Served
Operations
Supply Chain
Sales
Finance
Human Resources
Information
technology
2011 SAP AG. All rights reserved. 27
SAP solutions for oil & gas
for operational performance management for upstream
SAP helps to manage your upstream operations performance with a new solution
that provides convergence of engineering, production, maintenance and finance to
integrate overall production management processes for upstream


Solution highlights Key benefits
Data capture and validation, production
measurement and allocation
Equipment performance and maintenance
Production revenue and cost accounting
Multi-dimensional simulation and planning
Execution and evaluation of oilfield services
such as well servicing and workover
throughout production system
Integrated production, maintenance, and
financials for improved decision making
Improved assessment of well service and
well work-over performance
Improved operational efficiency
Maximized asset utilization
Reduced production losses
Improved reservoir recovery





Drivers Innovations Execution Run Better Value Summary
SAPs value
Solution Portfolio
for Oil & Gas
Industry Segments
Served
Operations
Supply Chain
Sales
Finance
Human Resources
Information
technology
2011 SAP AG. All rights reserved. 28
SAP solutions for oil & gas
for linear asset management
SAP helps to manage your linear assets as a continuous asset with dynamic
segmentation. This applies to all type of linear assets such as roads , rails, pipelines,
transmission lines and their associated networked equipment for inspections,
documenting conditions, and their maintenance and repair

Solution highlights Key benefits
Enhancements to networks and object links
Attributes created against networks
Dynamic segmentation to analyze roads,
pipelines and railroads etc
Extraction of linear data for master data
Enterprise SOA services
BW content for LAM/OAA
enterprise SOA services
Improved reliability of critical infrastructure
assets
Improved understanding of networked
impact of activities
Manage technical objects in a network
Analyze networks with dynamic
segmentation
Manage attributes for a network




Drivers Innovations Execution Run Better Value Summary
SAPs value
Solution Portfolio
for Oil & Gas
Industry Segments
Served
Operations
Supply Chain
Sales
Finance
Human Resources
Information
technology
2011 SAP AG. All rights reserved. 29
SAP solutions for oil & gas
for mobile enterprise asset management
The SAP EAM Work Order mobile app gives field technicians the information they
need to make informed and timely decisions and execute assignments more
efficiently. SAP EAM Work Order helps you mobilize any processes. Increase
equipment uptime, reduce back-office overhead, and extend
the value of your solutions.
Solution highlights Key benefits
Work and service order management
View, create, and edit work and service
orders on mobile devices and confirm
time and materials used
Notification management
Let maintenance technicians create their
own notifications and related activities,
items, and tasks
Inventory management
Track and manage spare-parts inventory
for work orders
Business partner management
Remotely access up-to-date customer
and business partner contact information
Increase technician productivity by
eliminating manual maintenance
processes and making data instantly
available for processing, scheduling, and
reporting
Increase equipment uptime by providing
faster and more accurate visibility into
maintenance and service activities
Reduce back-office overhead by native
integration with enterprise business
processes
Extend the value of enterprise
applications by mobilizing existing
business processes




Drivers Innovations Execution Run Better Value Summary
SAPs value
Solution Portfolio
for Oil & Gas
Industry Segments
Served
Operations
Supply Chain
Sales
Finance
Human Resources
Information
technology
2011 SAP AG. All rights reserved. 30
SAP solutions for oil & gas
for supply chain
SAP helps manage the closed-loop optimization of all channels of the bulk
hydrocarbon supply chain including the planning, scheduling, execution, and
monitoring of all hydrocarbon trading and distribution with the agility needed to
mitigate risk from and/or capitalize on market volatility

Key Business Processes Enabled Key benefits
Integrated trading and scheduling
Primary distribution
Secondary distribution and terminal
management

Manage financial and physical commodity
risks
Capitalize on opportunities during market
volatility
Reduce inventories and run-outs at the
same time
Reduce distribution costs and risks



Drivers Innovations Execution Run Better Value Summary
SAPs value
Solution Portfolio
for Oil & Gas
Industry Segments
Served
Operations
Supply Chain
Sales
Finance
Human Resources
Information
technology
2011 SAP AG. All rights reserved. 31
SAP solutions for oil & gas
for supply chain: primary distribution
Fully closed loop of planning, scheduling, execution, and monitoring of all modes of
bulk transportation including pipeline, ship, barge, and rail that helps shippers and
transporters of bulk materials reduce logistics costs and inventories while increasing
productivity and responsiveness to market volatility.
Solution highlights Key benefits
Balance and optimize demand & supply
Effectively coordinate planning, logistics,
operations and financial execution
Optimize inventory levels across the
network
Schedule bulk movements (nominations)
Manage detailed ops for all movements
Capabilities to manage and meet all safety,
regulatory and compliance requirements for
imports and exports
Expedite management of all post-
movement processes accurately and
consistently
Automated processing
Reduced TCO through integrated planning,
scheduling & execution
Better decision support through complete
inventory and movement visibility
Increased revenue through accurate cross-
processes
Better fleet utilization
Reduction in demurrage and other costs
Employees are all in line with company
goal, no silos in the business




Drivers Innovations Execution Run Better Value Summary
SAPs value
Solution Portfolio
for Oil & Gas
Industry Segments
Served
Operations
Supply Chain
Sales
Finance
Human Resources
Information
technology
2011 SAP AG. All rights reserved. 32
SAP solutions for oil & gas
for supply chain: secondary distribution
SAP helps to manage truck fleets, inventory, replenishment and truck dispatch
processes more efficiently with streamlined forecasting, integrated replenishment and
transportation planning, and integrated onboard computers
Solution highlights Key benefits
Optimal sourcing based upon product
availability, existing contracts and costs
Integrated automatic stock replenishment,
truck dispatch planning and optimization
Dispatching: Handle must go and can go
orders, dangerous goods, optimize trailer
compartment utilization and consider axle
weight restrictions
Tele-Sales with integrated pre-scheduling
Optimization of single and multi drop
scenarios
Automated reconciliation and posting of all
required transactions in SAP
Reduced transportation costs
Reduced inventories
Reduced fuel cost
Improved operational productivity
Reduced truck fleet up to 12%
Reduced replenishment costs up to 30%
Reduced stock-outs up to 15%




Drivers Innovations Execution Run Better Value Summary
SAPs value
Solution Portfolio
for Oil & Gas
Industry Segments
Served
Operations
Supply Chain
Sales
Finance
Human Resources
Information
technology
2011 SAP AG. All rights reserved. 33
SAP solutions for oil & gas
for sales
SAP helps meet customer demands with optimal profit margins by profitably
managing the changing demands of the end consumers for energy and convenience
items in an increasingly volatile market


Key Business Processes Enabled Key benefits
Retail network operations
Loyalty management
Increased average visit total purchases
Reduced stock outs AND lower average
inventories
Increased customer satisfaction and
loyalty






Drivers Innovations Execution Run Better Value Summary
SAPs value
Solution Portfolio
for Oil & Gas
Industry Segments
Served
Operations
Supply Chain
Sales
Finance
Human Resources
Information
technology
2011 SAP AG. All rights reserved. 34
SAP solutions for oil & gas
for finance
SAP integrates performance, strategy and risk into financial management with end-
to-end financial management that improves visibility, automation, and control,
resulting in more time to focus on strategic functions of finance


Key Business Processes Enabled Key benefits
Manage Financial Performance
Accelerated Financial Close
Financial Shared Services
Financial Value Chain
Manage Treasury and Financial Risk
Manage Risk and Compliance in
Commodity Industries
Manage Effective Venture Partnerships
Sustainability Reporting & Analytics
Reduced cost of finance as percentage of
revenue
Improved quality and timeliness of financial
reporting
Reduced enterprise risk
More time allocated to analysis and
planning


Drivers Innovations Execution Run Better Value Summary
SAPs value
Solution Portfolio
for Oil & Gas
Industry Segments
Served
Operations
Supply Chain
Sales
Finance
Human Resources
Information
technology
2011 SAP AG. All rights reserved. 35
SAP solutions for oil & gas
for finance: asset retirement obligations
SAP Asset Retirement Obligations Management is solution that provides functions
that enables the financial accounting associated with the retirement of long-lived
assets according to the accounting principles defined in US-GAAP (FASB/FAS143),
IFRS (IASB/IAS37) and/or by the German accounting principle HGB.
Solution highlights Key benefits
Automated valuation, accounting and
reporting and reporting of the asset
retirement obligations
Terms, cost estimates, interest and inflation
rates can be flexibly entered and adjusted
over the life-cycle of the ARO asset. Any
adjustments trigger the necessary postings
in accounting
The application is seamlessly integrated
into the accounting components of
standard SAP Financial and Management
Accounting, maximizing your SAP
investment.
The application substantiates compliance
by tracking history of changes and
providing improved and adequate reporting
Increased visibility to future financial
liabilities and obligations
Compliance with latest accounting
principles
Increased productivity




Drivers Innovations Execution Run Better Value Summary
SAPs value
Solution Portfolio
for Oil & Gas
Industry Segments
Served
Operations
Supply Chain
Sales
Finance
Human Resources
Information
technology
2011 SAP AG. All rights reserved. 36
SAP solutions for oil & gas
for human resources
SAP helps manage and develop talent needed to meet business objectives by
enabling the full integrated lifecycle of talent acquisition, development, and service
resulting in higher quality and satisfied talent at lower cost and risk to the enterprise


Key Business Processes Enabled Key benefits
HR & Payroll
Shared Services Framework
Talent Management
Reduced cost of HR as percentage of
revenue
Improved quality and timeliness of HR
reporting
Reduced enterprise risk
More time allocated to analysis and
planning

Drivers Innovations Execution Run Better Value Summary
SAPs value
Solution Portfolio
for Oil & Gas
Industry Segments
Served
Operations
Supply Chain
Sales
Finance
Human Resources
Information
technology
2011 SAP AG. All rights reserved. 37
SAP solutions for oil & gas
for information technology
SAP Effectively and Reliably Deliver and Service Requisite Information Technology
Provide robust and reliable technology platform to support all needed business
requirement in the most cost effective and compliant manner
Key Business Processes Enabled Key benefits
Insight and Analytics
Enterprise Information Management
IT Operational and Service Excellence
Business Integration
Business User Productivity
Reduced TCO of Information Technology
Improved quality and reliability of IT
services provided
Reduced business risk from IT
Ability to run and manage IT as a business
Drivers Innovations Execution Run Better Value Summary
SAPs value
Solution Portfolio
for Oil & Gas
Industry Segments
Served
Operations
Supply Chain
Sales
Finance
Human Resources
Information
technology
2011 SAP AG. All rights reserved. 38
Customer centric and innovation driven
SAPs strategy for oil & gas
Innovations
Solutions
Recent innovations
Upstream
performance
analytics
Technology
Mobility
Business analytics
In-memory
Delivery
Customer
co-innovation
Ecosystem
Rapid deployment
solutions
Incident mgmt
Linear asset mgmt
Delivery Innovations
Technology Innovations
Solution Innovations
IT
ON DEVICE
ON DEMAND
ON PREMISE
O
R
C
H
E
S
T
R
A
T
I
O
N

TECHNOLOGY
On demand
Drivers Innovations Execution Run Better Value Summary
2011 SAP AG. All rights reserved. 39
Selected solution innovations
Available today
Operational risk management
Increase operational visibility to reduce
risks and increase process safety
Track and address incidents and
opportunities of all types on global basis
Implement energy management to
increase visibility to energy consumption
Upstream operations performance
analytics
Visibility into overall upstream
operational performance across
global asset base
Integration with ERP functions
enables immediate execution
Set of operational KPIs and data
model that accelerates deployment

Asset management
Linear asset management and
operational level costing
Project and program management
capability improvements for
exploration, development and other
projects
Asset management, service and
maintenance improvements
Finance
Integration of risk and control
management capabilities
Enhanced commodity trading and risk
management capabilities
Improved user experience across
processes and analytics

Drivers Innovations Execution Run Better Value Summary
Innovations
Solutions
Recent innovations
Upstream
performance
analytics
Technology
Mobility
Business analytics
In-memory
Delivery
Customer
co-innovation
Ecosystem
Rapid deployment
solutions
Incident mgmt
Linear asset mgmt
On demand
2011 SAP AG. All rights reserved. 40
Selected solution innovations
SAP BusinessObjects Upstream Operations Performance Analysis
The SAP BusinessObjects Upstream Operations Performance Analysis analytic
application provides a framework for aggregating and analyzing production,
maintenance, human resources, environmental, and financial data to support holistic
performance management across all your upstream assets.
Key functions and features Key benefits
Near real-time visibility: create and share a
unified and up-to-the-minute view of all the
resources, organizations, and processes tied
to production operations
Integration with ERP functions: help control
costs at the source by understanding the
relationship of each business activity to your
bottom line
Access to granular information without the
need for query or database skills
Key Performance Indicators (subset)
Production volume versus plan
Spills or incidents per MM BOEPD
Training compliance
Operating expense versus plan
Lost time incident frequency


Better cost control through analytics that
help you understand and balance trade-offs
Faster response to operational anomalies
through tighter monitoring of KPI trends
across the ecosystem
Reduced downtime through big-picture input
to intelligent scheduling of reservoir recovery
and equipment installation, maintenance,
and repair




Drivers Innovations Execution Run Better Value Summary
Innovations
Solutions
Recent innovations
Upstream
performance
analytics
Technology
Mobility
Business analytics
In-memory
Delivery
Customer
co-innovation
Ecosystem
Rapid deployment
solutions
Incident mgmt
Linear asset mgmt
On demand
2011 SAP AG. All rights reserved. 41
Selected solution innovations
Incident management
Incident management is a key element of any effective operational risk management
system. SAPs new incident management capabilities covers the complete lifecycle
from initial reporting, incident processing, investigation, and ultimately reporting and
analysis. All fully integrated with SAPs EAM solution, yet still open to others.
Key functions and features Key benefits
All incidents, near misses, observations in
one system
Automated data collection from SAP
business systems
Simple, fast incident reporting by anyone,
anywhere online and offline
Standard guided processes for data
collection, tasks, and monitoring
Flexibility to meet local requirements
Integrated, workflow-enabled action
management
Dashboards and analytics to see trends and
exceptions for quick action


Reduce risks
Assure compliance
Enforce standard processes
Proactively reduce operational risks
Decrease costs
Standardize incident mgmt. Processes
Improve productivity with automation
Lower IT support costs
Create opportunity
Keep license to operate
Protect brand and reputation
Win more business




Drivers Innovations Execution Run Better Value Summary
Innovations
Solutions
Recent innovations
Upstream
performance
analytics
Technology
Mobility
Business analytics
In-memory
Delivery
Customer
co-innovation
Ecosystem
Rapid deployment
solutions
Incident mgmt
Linear asset mgmt
On demand
2011 SAP AG. All rights reserved. 42
Selected solution innovations
Linear asset management
Linear asset management is functionality within the plant maintenance (PM) module
that is especially designed to meet the requirements of linear asset maintenance that
need to represented and modeled over for several kilometers (or miles) with
changing characteristics and conditions.
Linear referencing functions (for example,
schema for markers)
Linear data modeling Enhancement of
technical objects functions and classification
system to support the definition of a linear
asset
Linear asset work management
Enhancement of work order processing to
support linear work definition, including work
orders, confirmations, and maintenance
plans
Inspection and condition monitoring
Notifications, measurement points /counters,
and measurement documents now support
linear information
Reports for all of the above


Management of continuous assets with
dynamic segmentation
Ability to identify maintenance locations
(where to work) and work orders, by length
attributes like kilometer, direction, and offsets
Increased assets capability and availability
as low performance in any linear section can
have big impact on overall throughput
Ability to see order costs at operation level




Key functions and features Key benefits
Drivers Innovations Execution Run Better Value Summary
Innovations
Solutions
Recent innovations
Upstream
performance
analytics
Technology
Mobility
Business analytics
In-memory
Delivery
Customer
co-innovation
Ecosystem
Rapid deployment
solutions
Incident mgmt
Linear asset mgmt
On demand
2011 SAP AG. All rights reserved. 43
Technology innovations
On Demand
Analytics
Mobility In-Memory
Drivers Innovations Execution Run Better Value Summary
Innovations
Solutions
Recent innovations
Upstream
performance
analytics
Technology
Mobility
Business analytics
In-memory
Delivery
Customer
co-innovation
Ecosystem
Rapid deployment
solutions
Incident mgmt
Linear asset mgmt
On demand
2011 SAP AG. All rights reserved. 44
Enterprise mobility for oil & gas
Manage and maximize mobility value



Allows businesses to
manage and secure mobile
devices with full confidence




Empowers you to build
compelling mobile
applications using IDEs
(Eclipse and Visual Studio)

Sybase
Unwired
Platform
Business Focus IT Focus
Create


Allows your users to use the
mobile applications from the
device of their choice

Consume Control


Enables your users to
communicate and interface
with any SAP or non SAP
data source and applications
Connect
Drivers Innovations Execution Run Better Value Summary
Innovations
Solutions
Recent innovations
Upstream
performance
analytics
Technology
Mobility
Business analytics
In-memory
Delivery
Customer
co-innovation
Ecosystem
Rapid deployment
solutions
Incident mgmt
Linear asset mgmt
On demand
2011 SAP AG. All rights reserved. 45
Business analytics for oil & gas
Opportunities for the business
Services and Best Practices
Analytic
Applications
Governance,
Risk, and
Compliance
Enterprise
Performance
Management
Business
Intelligence
Data
Warehousing
Enterprise
Information
Management
Analytic Capabilities
Collaboration
Data Sources Access
Drivers Innovations Execution Run Better Value Summary
Innovations
Solutions
Recent innovations
Upstream
performance
analytics
Technology
Mobility
Business analytics
In-memory
Delivery
Customer
co-innovation
Ecosystem
Rapid deployment
solutions
Incident mgmt
Linear asset mgmt
On demand
2011 SAP AG. All rights reserved. 46
Realize the full value of all your data assets
With in-memory technology integrated
in your business, youll see immediate benefits
Simpler and more cost-effective manage large data
volumes while reducing IT complexity
Deeper insight analyze more granular data
Real-time access when it happens, you know it
Immediate answers with 3600x faster analytics


Drivers Innovations Execution Run Better Value Summary
Innovations
Solutions
Recent innovations
Upstream
performance
analytics
Technology
Mobility
Business analytics
In-memory
Delivery
Customer
co-innovation
Ecosystem
Rapid deployment
solutions
Incident mgmt
Linear asset mgmt
On demand
2011 SAP AG. All rights reserved. 47
SAPs on demand portfolio
Seamlessly integrated for a hybrid world
Integrated
suite


Departmental
solutions
People-centric
solutions
SAP on demand
Achieve faster implementations
using consumption-ready
capabilities out of the box
Reduce onsite IT costs
Shift to operational expenses
and streamline cash flows
Scale with growth
Solutions for multiple levels of the
company
Enterprise-wide processes for
smaller organizations and
subsidiaries
Process-based solutions for line of
business needs
Analysis and reporting for all levels
Business process outsourcing for
all levels (through partners)
Drivers Innovations Execution Run Better Value Summary
Innovations
Solutions
Recent innovations
Upstream
performance
analytics
Technology
Mobility
Business analytics
In-memory
Delivery
Customer
co-innovation
Ecosystem
Rapid deployment
solutions
Incident mgmt
Linear asset mgmt
On demand
2011 SAP AG. All rights reserved. 48
Production loss analysis
Optimize the maintenance plan to
reduce most costly failures first
Analyze equipment failure to decrease lost production
Compressor
Part Failures
Compare
production
to plan
Diagnose
failure
causes
Implement
new
actions
Reduce
losses
Operators recognize
equipment failures
Drivers Innovations Execution Run Better Value Summary
Innovations
Solutions
Recent innovations
Upstream
performance
analytics
Technology
Mobility
Business analytics
In-memory
Delivery
Customer
co-innovation
Ecosystem
Rapid deployment
solutions
Incident mgmt
Linear asset mgmt
On demand
2011 SAP AG. All rights reserved. 49
Well service performance analysis
Analyze workover plan to increase production
Analyze a workover plan to
determine profitability
Well loading with
liquid
Compare
production
to plan
Diagnose
causes
Implement
new
actions
Restore
profit
Operators recognize
well underperformance
Drivers Innovations Execution Run Better Value Summary
Innovations
Solutions
Recent innovations
Upstream
performance
analytics
Technology
Mobility
Business analytics
In-memory
Delivery
Customer
co-innovation
Ecosystem
Rapid deployment
solutions
Incident mgmt
Linear asset mgmt
On demand
2011 SAP AG. All rights reserved. 50
Delivery innovations
Drivers Innovations Execution Run Better Value Summary
Innovations
Solutions
Recent innovations
Upstream
performance
analytics
Technology
Mobility
Business analytics
In-memory
Delivery
Customer
co-innovation
Ecosystem
Rapid deployment
solutions
Incident mgmt
Linear asset mgmt
On demand
2011 SAP AG. All rights reserved. 51
SAP Manufacturing Integration and Intelligence for energy analysis
Rapid-deployment solutions
Opportunity for the business Solution
Customers are looking to link disparate production and financial
data in order to provide real time energy monitoring.

The SAP manufacturing integration and intelligence (SAP MII)
rapid-deployment solution for energy analysis allows for a quick
and affordable implementation, while reducing risk and creating a
predictable path towards energy consumption reduction.
SAP delivers a lightweight and rapidly
implementable solution for
manufacturers providing energy use &
cost visibility across multiple
sites/energy types. The solution
supports multiple roles (e.g. COO, VP
mfg, energy champion), enabling the
information presented to a user to be
tailored to their needs.
SAP Portfolio and Project Management for portfolio monitoring
Opportunity for the business Solution
Customers want to manage their limited resources with increased
project / resource visibility so they can focus resources on highest
value projects while controlling costs and plan profitability

The SAP portfolio monitoring rapid-deployment solution enables
organizations to align their projects to goals and allows
Portfolio-based decision making support for new projects
Monitoring of running projects on portfolio and program level
SAP provides an easy monitoring and
decision making support for operative
projects running in SAP project system
(PS). Monitoring capabilities include
e.g. Financial integration as well as
standard analytics via SAP business
objects explorer and business context
viewer.
Drivers Innovations Execution Run Better Value Summary
Innovations
Solutions
Recent innovations
Upstream
performance
analytics
Technology
Mobility
Business analytics
In-memory
Delivery
Customer
co-innovation
Ecosystem
Rapid deployment
solutions
Incident mgmt
Linear asset mgmt
On demand
2011 SAP AG. All rights reserved. 52
Customer co-innovation
Oil & Gas
Global
Industry
Advisory
Council
A three tiered structure that spans executive governance to execution is managing
a portfolio of coinnovation projects that span both continuous improvement and
strategic white space development opportunities for SAP within Oil & Gas. Most
notable projects are within production revenue accounting, traders schedulers
workbench, operations performance and operational risk management areas
SAP Community Network
This online hub supports customers, partners, consultants, experts, and SAP employees.
Companies can find answers to questions and benefit from the expertise of other community
members as they develop their own products.
the idea place
Just launched an open online forum for customers and ecosystem partners to connect and
provide feedback on new developments from SAP.
SAP BusinessObjects innovation center
This interactive online forum lets customers sample SAP technology that is in development.
Companies can download prototype software and offer their feedback.
SAP Premier Customer Network
Successful companies that SAP has selected to collaborate and share ideas. Network members
participate in programs designed to cultivate, diversify, and transform ideas into tangible business
improvements.
Drivers Innovations Execution Run Better Value Summary
Innovations
Solutions
Recent innovations
Upstream
performance
analytics
Technology
Mobility
Business analytics
In-memory
Delivery
Customer
co-innovation
Ecosystem
Rapid deployment
solutions
Incident mgmt
Linear asset mgmt
On demand
2011 SAP AG. All rights reserved. 53
Ecosystem
Consulting and integration
Global partner for
consulting and system
integration and ByD
development partner
Global partner for
consulting and
system integration
Global partner for
manufacturing consulting
& system integration
Value-add resellers/development
Enterprise Content
Management
Asset information
management and
operational readiness
Asset performance,
maintenance &
maintenance
assessment
Process Control,
Historian, Opers. Event
Mgt
Secondary distribution
and terminal
management
Operations level
mobility
Land lease
management and gas
plant accounting
Operations performance
management, process
industry MES
integration & analytics
Drivers Innovations Execution Run Better Value Summary
Innovations
Solutions
Recent innovations
Upstream
performance
analytics
Technology
Mobility
Business analytics
In-memory
Delivery
Customer
co-innovation
Ecosystem
Rapid deployment
solutions
Incident mgmt
Linear asset mgmt
On demand
2011 SAP AG. All rights reserved. 54
References and results
References
and results
Midstream & Refining Exploration & Production Downstream & Retailing
National Oil Companies
Integrated Majors
Oil Field Services
Merit Energy
SK Energy
Surgutneftegas
Drivers Innovations Execution Run Better Value Summary
Content redacted.

Please contact your SAP Account Team for additional insight/details
2011 SAP AG. All rights reserved. 55
Merit Energy Company
invests in mature oil and
gas assets, using its
expertise to control costs
and increase production
while enhancing
shareholder value. To
support detailed data
analysis, the company
deployed SAP NetWeaver
Business Warehouse
Accelerator software.

Only because we adopted
SAP NetWeaver BW
Accelerator can we now drill
down directly from an
enterprise summary straight
into detailed analysis.
Phillip Knight, Manager of
Information Technology,
Merit Energy Company
References
and results
Merit Energy
SK Energy
Surgutneftegas
Simplified user interface through integration
with Microsoft Office SharePoint Server 2007
Streamlined IT architecture and design
Improved decision making using structured
reporting and ad hoc analysis capabilities
Lower IT support costs
Enhanced competitive advantage in growing
market
25% faster response to queries
1 week implementation
100% User adoption
Drivers Innovations Execution Run Better Value Summary
Content redacted.

Please contact your SAP Account Team for additional insight/details
2011 SAP AG. All rights reserved. 56
SK Energy Co. Ltd. is
Koreas leading energy and
petrochemical company, with
global operations. The
company wanted to
strengthen its dealer and
customer relationships to
maximize profits, improve
competitiveness, and build
company value.

To grow in the Asia-Pacific
market, SK Energy needed to
work more effectively
www.sap.com/contactsap
with our network of dealers.
The SAP CRM application is
helping us execute on that
objective.

Sung Joon Park, Senior Manager, IT
Management Team, SK Energy Co.
Ltd.
Merit Energy
SK Energy
Surgutneftegas
References
and results
Improved visibility into critical areas such as
sales activity and revenue per customer
Increased customer satisfaction through an
integrated enterprise-wide support operation
Timely decision support with real-time access
to customer and dealer information
Real-time service request processing
- 33% service request response time
75% lower maintenance costs
+0.5% sales volume
Drivers Innovations Execution Run Better Value Summary
Content redacted.

Please contact your SAP Account Team for additional insight/details
2011 SAP AG. All rights reserved. 57
Surgutneftegas, one of the
largest oil and gas
producers in Russia,
employs innovative
technologies and automated
processes. Deploying
SAP software and
technology helped raise data
quality allowing them to
optimize inventory, reduce
purchasing costs, and
achieve a dramatic ROI.

SAP Consulting professionals
helped us build a solution that
supports our key business
processes with current,
consistent master data. This
project is the first step in
building our new, service-
oriented IT architecture.

Rinat Gimranov, CIO,
Surgutneftegas
Merit Energy
SK Energy
Surgutneftegas
References
and results
Enhanced data governance by deploying
transparent, end-to-end, change-approval
processes for master data
Improved quality of master data
Eliminated data attribution conflicts between
material procurement and financial
departments
Improved alignment of purchasing cycle to
reduce procurement processing time
Reduced production downtime through
integrated materials planning
229% return on investment (in 3 years)
0.5% Working capital reduction due to
inventory optimization
10% Lower master-data maintenance
costs
Drivers Innovations Execution Run Better Value Summary
Content redacted.

Please contact your SAP Account Team for additional insight/details
2011 SAP AG. All rights reserved. 58
SAP helps the oil & gas industry run better
Summary
SAP innovations
enable business
transformation
On-Demand Mobility Business
Analytics
In-Memory
Computing
IT value
Orchestration across on premise, on demand and on device
providing flexibility, security and scalability on a single IT
platform.
Easily consumable through implementable steps
Quick ROI through rapid deployment solutions (RDS)
Secure reliable operations tuned for your business

Business value
End to end processes for multi industry value chains combining
horizontal and industry specific solutions
Collaborate better to enable collaborative performance
management of assets
Decide better to proactively identify and manage operational
risks and areas of growth
Adapt better to make optimal asset and energy development
investments
Operate better to increase energy production with less capital
and operational costs
Drivers Innovations Execution Run Better Value Summary
2011 SAP AG. All rights reserved.
SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP
BusinessObjects Explorer, StreamWork, and other SAP products and
services mentioned herein as well as their respective logos are trademarks
or registered trademarks of SAP AG in Germany and other countries.
Business Objects and the Business Objects logo, BusinessObjects, Crystal
Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business
Objects products and services mentioned herein as well as their respective
logos are trademarks or registered trademarks of Business Objects
Software Ltd. Business Objects is an SAP company.
Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and
other Sybase products and services mentioned herein as well as their
respective logos are trademarks or registered trademarks of Sybase, Inc.
Sybase is an SAP company.

All other product and service names mentioned are the trademarks of
their respective companies. Data contained in this document serves
informational purposes only. National product specifications may vary.
These materials are subject to change without notice. These materials
are provided by SAP AG and its affiliated companies (SAP Group)
for informational purposes only, without representation or warranty of
any kind, and SAP Group shall not be liable for errors or omissions with
respect to the materials. The only warranties for SAP Group products and
services are those that are set forth in the express warranty statements
accompanying such products and services, if any. Nothing herein should be
construed as constituting an additional warranty.