SAP IS-Oil Introduction

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Training Agenda

Day Introduction to IS-Oil 1

Module

Marketing, Contracts, Order Entry-MCOE Marketing, Accounting , Pricing - MAP

Hydrocarbon Product Management - HPM Transportation & Distribution - TD

Tariff , Duties & Permits - TDP

Exchanges - EHG

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Objective

Introduction on SAP IS-Oil. IS-Oil key Functionality Overview.

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Industry Value Chain

Crude Storage
Refining

Product Storage

Primary Transport

Secondary Transport

Exploration

Retail Stations

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Industry Segmentation
Upstream Exploration and production of crude oil, including the movement of crude oil from its source to the refineries

Downstream Petroleum operations after crude production, including the movement of oil from the refineries to the terminals and then to the end user

Oil & Gas Industry Upstream Exploration & Production Refining Downstream Marketing & Distribution

Wholesale

Retail
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Crude Oil Characteristics

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Whats in a barrel of crude Oil

Refineries upgrade crude into high value products

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Refinery basic concepts

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What is IS-Oil?

Industry Solution for the Oil Industry Standard suite of integrated systems with industry-specific enhancements Set of interfaces to enable links to external systems
Interface to API (American Petroleum Institute) C-Code tables Interface to Terminal Automation system Interface to Transportation planning

Built as a global product with regional and country-specific functionality

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Why IS-Oil?

Industry undergoing significant re-engineering. Desire for an integrated solution.

Industry can "share" in the development costs.

Don't want to build and maintain massive systems into the future. Industry continuously improving IT solutions to manage their value chain.

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Mission of IS-Oil

To provide a global solution for the oil industry, developed in conjunction with industry partners, which is flexible, fully supported, and integrates functions and information for the mainline business processes in the supply chain.

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IS-Oil Approach

SAP had the following approach to develop the Industry Solution which is now very well established in the Industry. Involving active customers from the oil industry. Set up of SAP Oil Development Centre. Develop an overview of the relevant business area. Identify best business practices specific to the oil industry. Reproduce the SAP core business functions in oil business processes. Identify necessary additional functions.

Design development, Realization, Quality assurance.

Launch of Industry template . Transition into further SAP environments
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IS-Oil evolution

ITS

Easy Web Transactions

Statoil B2B

Customer developments

Joint process definition JV accounting

Downstream Industry template

Industry Exchange
Exploration & Production

Standardized Processes >500 Customers >500.000 my SAP Oil&Gas Users

250 100 customers 50 customers 20 Mobil customers customers Hamburg

Joint process definition Downstream

Exchange Recon Business Service

Establish Establish R/3 Oil R/2 Oil consortium consortium

Global Industry Advisory Council

400+ customers

198 3

1990

1995

2000

2001
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Oil & Gas Industry Supply Chain

Exploration & Supply & Refining & Production Transmission Manufacturing Producer Crude Distributor Refiner

Primary Distribution Distributor

Marketing & Sales Marketer

Secondary Distribution Distributor

Retailing

Retailer

Refined Products & LPG Lubricants Natural Gas Natural Gas

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SAP Solution for Oil & Gas Industry

mySAP SCM for the Oil & Gas Industry is a complete and comprehensive solution to cover the movement of bulk volumes throughout the supply chain network. It provides support for activities in all lines of business - crude, refined products & LPG, lubes, natural gas and chemicals.

Exploration & Supply & Refining & Production Transmission Manufacturing Producer Distributor Refiner

Primary Distribution Distributor

Marketing & Sales Marketer

Secondary Distribution Distributor

Retailing

Retailer

IS-Oil Upstream IS-Oil Downstream Supply Chain Management Traders & Schedulers Workbench
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High level Oil & Gas Process

Procurement / Exploration

Production

Distribution

Sales

Returns

Long Term Planning (Network Design)

PLANNING

Mid Term Planning ( Supply Network Planning)

Demand Planning

OPTIMIZATION

Purchase Planning

Production Planning & Detailed Scheduling

Allocation, Transport Planning & Vehicle Scheduling

Short Term Demand Planning

SCHEDULING

Processing of Purchase, Production, Inventory Management, Distribution, Sales & Return

EXECUTION/ OPERATIONS

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SAP Solution Landscape for Oil & Gas Industry

PLANNING/ OPTIMIZATION

SCHEDULING

EXECUTION/ OPERATIONS

APO
Demand Planning (DP)

TSW
Inventory and Replenishment planning

IS-Oil
Financials

APO- Advanced Planner & Optimizer

The areas of demand/supply planning and forecasting, as well as supply chain balancing and optimization are addressed in APO.

Collaborative Planning

Interfaces to external Trading Systems

Exchanges

TSW- Traders & Schedulers Workbench

TSW covers the whole range of business requirements for Inventory and Replenishment Planning , Scheduling (including the Distribution Schedule), Nomination Processing, Marine Berth Scheduling and Integration into Execution Processing, including Ticketing.

Supply Network Planning SNP

Scheduling

Contracts / Orders

Production Planning Detailed Scheduling Transport Planning & Vehicle Scheduling

Collaborative Nomination

Inventory

Ticketing and Event Handling

Movements

IS-OIL
SAP R/3 with IS-Oil Downstream covers the processes of order entry, contract management, inventory management, transport and movement execution.

Global Availability to Promise (ATP)

Integration to R/3 Process

Transport

Usage in specific business lines (e.g. chemicals, gas and lubes)

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IS-Oil Coverage of Industry Requirements

Industry-specific requirements addressed by IS-Oil

Generic business requirements covered by standard SAP

Company specific point solutions

Common Functionality for the World-wide Oil Industry

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Integration of IS-Oil
Client/server architecture Integrated solution
MM
Materials Mgmt

Comprehensive functionality

SD
Sales

FI
Financial Acctg.

Graphical user interface

CO AM
Asset Mgmt

Controlling

PP
Production Planning

Open system

QM
Quality Mgmt

R/3
PM
Plant Maint.

PS
Project System

Reference Model

Downstream

Upstream

WF
Workflow

HR
Human Resources

IS
Industry Solution

IS Oil
IS Publishing IS Banking

Enterprise Data Model Multinational use Distributed applications

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IS-Oil Solutions
Upstream
Exploration & Production

Downstream
Marketing & Retail

Addresses the business need during Oil Exploration, Field development, Production and Primary Transportation

Addresses the business need of Refineries, Primary Distribution, Terminal Management, Secondary Distribution, Marketing & Retailing

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IS-Oil Upstream Solutions

Joint Venture Accounting (JVA) : Offers the flexibility to provide a complete accounting system to meet the different reporting and business requirements that apply to joint venture operations during exploration and production. Production and Revenue Accounting (PRA) : To manage the volumetric allocation, ownership allocation, contractual allocation, and product balancing for national oil companies engaged in upstream production operations Production Sharing Accounting (PSA) : Supports the reporting requirements of oil Companies that operate under contractual arrangements with national governments.

Remote Logistics Management (RLM) : Support the supply of materials to production operations in remote locations, be they offshore or onshore

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IS-Oil Downstream Supply Chain Process

Gathering System Producer Contract Exchange Contract Supply Pipeline

Oil & Gas Production

Lubes Plant Refinery

Bulk Terminal Transfers, Sales, Purchases, Exchanges Bulk Terminal

Pipeline batches

Sales Contract

Exchange Contract Purchase Contract

Chemical Plant

Retail Stations
Commercial Customers

Sales Contract

Acquisition/ trading
Quotations Contracts Order Entry Pricing

Transport
Receipts / Deliveries Transit Losses / Gains Inventory Balances Purchases from Suppliers

Manufacturing
Inventory Balances Receipts / Deliveries Feedstock / Crude Purchases Finished Product Sales Production / Consumption Product Specifications Materials Planning

Storage/ Distribution
Receipts / Deliveries Sales / Purchases Scheduling of Deliveries Losses / Gains Planned Movements Inventory Forecasts Taxes

Marketing
Profit & Loss Analysis Sale to Customer Rebates / Pricing Customer Invoicing Retail Shipping Preplanning Export

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IS-Oil : Key Downstream Functionality

SAP Core

Acquire/ Trade

Transport

Manufacture

Store/ Distribute

Market

IS-Oil

MCOE HPM EXG TD MAP

Marketing Tariffs, Duties, Permits

Marketing, Contracts, Order Entry Hydrocarbon Product Management Exchange Handling

Transportation

Distribution
Accounting, Pricing

TDP
MRN

Marketing, Retail, Network

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IS-Oil : Key Downstream Functionality

MCOE - Marketing Contracts and Order Entry

Meets the requirements of the oil industry in the areas of fast order entry and contract processing.

HPM - Hydrocarbon Product Management

Covers Physical Inventory management of Oil products with Silo ( Tank ) management Functionality. Quantity Conversion Interface Functionality helps in converting Transaction quantity in to multiple Units of Measure using Petroleum measurement standards API /ASTM.

EXG Exchanges :
Contains functions for managing exchange agreements between Oil companies.

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IS-Oil : Key Downstream Functionality

TD - Transportation and Distribution

Covers the logistics activities related to Bulk movement of Oil Products.

MAP - Marketing Accounting Pricing

Covers the pricing requirements such as Formula & Average pricing for Oil products.

TDP - Tariffs, Duties, Permits

Provides functionality for calculating and posting excise duty for dutiable goods.

MRN - Marketing Retail Network

Provides functions for managing business locations such as service stations, depots and terminals

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Thank You