Information Management - Strategy & Implementation

SIEP RTS

Some Observations on Data Management in Shell

By: Ax Hesterman and Tom Gulman SIEP EPT-AM

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Information Management - Strategy & Implementation

SIEP RTS

OutlineIntegrationBusiness Technology the maturing world of assets and processes the virtual world of E & P software

Business driversUnderstanding the work flow

Technology driversUnderstanding the information flow

State of PlayCurrent Vision

Implementation Experience2 E&P Information Management Conference - September 1997 2

Information Management - Strategy & Implementation

SIEP RTS

EP realitiesBusiness drivers Best practices

EP business

Business integration

EP software

Technology integration

Integrated deployment3

Technology driversE&P Information Management Conference - September 1997 3

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Integration vision

EP business processes EP integrated processes EP virtual processes

Analogy:

flying an aircraft - by hand - by computer (shift over time and during flight)

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Information Management - Strategy & Implementation

SIEP RTS

Business driversIncrease profits and market share Reduce cycle time and cost Improve safety and environmental impact

Business responseTarget setting Asset management Process management5 E&P Information Management Conference - September 1997 6

Information Management - Strategy & Implementation

SIEP RTS

Generic business modelMission Vision Strategy Assets(Asset management)

Add value

Resources(Resource management)

Processes (Process management) Improve(benchmark)

Activities (Activity management)

Use

Do Produce6 E&P Information Management Conference - September 1997 9

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Technology driversObject orientation - component software Networks - WWW-Internet / Intranets Lower (hardware) cost Data management tools

Business responseBusiness reflected in software (virtual processes) Improved accessibility and sharing7

More data of higher quality

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Business model in softwareEP virtual processesIntegration framework: standards (POSC / STEP) + tool kit Manage assets Data bases

Manage activities

Applications

"One system"

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Information Management - Strategy & Implementation

SIEP RTS

Data transfer between applications"virtual reality"From exploration to production

Reformatting step

Analogy: - European railway systems

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SIEP RTS

Developing trendFrom exploration to production

Integration backbone AReformatting step

Integration backbone B

Integration backbone C10 E&P Information Management Conference - September 1997 14

Information Management - Strategy & Implementation

SIEP RTS

Option 1= Shell + industry applications Integration backbone A

Data base + Tool kit(= infrastructure)

= Application

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Option 2= Shell + industry applications Integration backbone A Integration backbone B

Data base + Tool kit

Data base + Tool kit

= Reformatting step

= Application

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Information Management - Strategy & Implementation

SIEP RTS

Option 3= Shell + industry applications Integration backbone A Integration backbone B

Data base + Tool kit

Data base + Tool kit

= Reformatting step

Data base + Tool kit Integration backbone C

= Application

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SIEP RTS

Reality?= Shell + industry applications Integration backbone A Integration backbone B

Data base + Tool kit

Data base + Tool kit

= Reformatting step

Data base + Tool kit Integration backbone C

= Application

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SIEP RTS

Effort of building data basesDepends on span of data base over business areaIncreasing complexity - increasing cost

If span of data coverage is small:Several data bases needed Multiple interfaces needed Data management complex (e.g. naming conventions)

If span of data coverage is large:Complex data model Difficult to construct Difficult to adapt Agreement across business more difficult

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RequirementsUnderstanding of own business processesWork flow determines information flow

Flexibility of data bases, applications and linksTo mimic the business in software (virtual processes)

Understanding of information needs Standards for data storage (data model), data exchange (links) and nomenclature (naming conventions)Tools for data modelling and data mapping

Data management guidelinesTools & procedures to support data management (e.g. security, sharing, quality checking (e.g. inconsistent names))16 E&P Information Management Conference - September 1997 20

Information Management - Strategy & Implementation

SIEP RTS

Current view of marketMultiple, but reducing, number of vendors Development of mega-applications by the major vendors Development of vendor applications and associated (project) data bases: "INTEGRATION BACKBONES" (= infrastructure) "Pearls" from small vendors and own developments by oil companies Infrastructure issues & clashes:Data connectivity GUI Data integration and application integration not aligned17 E&P Information Management Conference - September 1997 21

Information Management - Strategy & Implementation

SIEP RTS

Long term visionSupported: Vendor-neutral plug-and-play, based on industry standardsIndustry standards: De jure: De facto: Unknown: POSC - STEP Vendors Unexpected

Shell as member of POSC: Will shift focus more to application of standardsAway from development of standards

Will work more with vendorsEmphasise implementation of standards in products

Not supported: Vendor suite integration, just to reduce complexity of take-over products18 E&P Information Management Conference - September 1997 22

Information Management - Strategy & Implementation

SIEP RTS

Short termLong term view as guidance Integration, as far as possible, NOWBased on current commercial products

Prioritisation for future developmentsBusiness processes Information needs CRITERIA for evaluating vendor backbones

Strategic partnership(s)Vendor neutral Not necessarily with the traditional vendors19 E&P Information Management Conference - September 1997 24

Information Management - Strategy & Implementation

SIEP RTS

Implementation ExperiencesCentrally supported implementation of IBM's PDS environment Initial focus: field development phase Moving towards production optimisation

Loose confederation of Operating Units implementing Landmark's Openworks covers the acquisition phase

Centrally supported development of a corporate data warehouse for EP technical data using Epicentre Some individual companies doing own thing One based on Finder One development using PPDM data model One data repository development since 1989 that continues to expand

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E&P Information Management Conference - September 1997

Information Management - Strategy & Implementation

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Observations (1)One size fits none Each operating unit chooses development best suited for its environment, size, maturity, and future prospects

No solution covers the entire EP life cycle today Multiple implementations a reality in many operating units

More integration activity at the early part of the life cycle than later GG area is better covered than operations, well optimisation

SAP is another intergration backbone Will expand into many service functions SAP will become a source of data: e.g. procurement, materials, cost data needed for economic analysis Existing systems will need to feed SAP

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E&P Information Management Conference - September 1997

Information Management - Strategy & Implementation

SIEP RTS

Observations (2)Evolution, not revolution, is the order of the day Integration technology deployment has to link with working practices

Existing projects are just a step in a longer process Integration projects are evolving as business processes evolve The target environment is years and several generations away

Data integration and applications integration need a push to converge We need proactive oil company involvement

Integration not the same for suppliers and OilCos Oil companies want flexibility to choose best of class applications and be able to swap out one for another Suppliers focus on their own stable of databases and applications Suite lock-in is real

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E&P Information Management Conference - September 1997

Information Management - Strategy & Implementation

SIEP RTS

RecommendationsBe an active supporter of industry standards Shell supports: POSC & STEP Data access (LightSIP) Data exchange (SMDTI) Interoperability & Business Objects Application connectivity (OpenSpirit)

Get your data management strategy agreed at the highest levels Have a stated policy in your company Get it accepted within the rank and file Link support of standards to real business needs

Use commercial products, but challenge suppliers Clarify what your supplier means by "open" Measure supplier by his conformance to your definition Test openness whenever possible Challenge suppliers to adopt and conform to standards as early as is feasible23 E&P Information Management Conference - September 1997