PanCanadian and ABB in Canada join forces to deliver cost saving software to oil and gas industry

PanCanadian Petroleum Limited and ABB Automation Inc. - HPI in Canada have formed a joint venture to produce and market innovative software solutions around the world that will significantly increase production and reduce upstream oil and gas operating costs.

The new software company, Smartcore Systems Inc., is a 50-50 joint venture between ABB and PanCanadian. Smartcore's first product, iVision, allows oil and gas companies to remotely and efficiently convert large volumes of data into useful information. This conversion of data to information allows engineers and operators to make decisions that result in significant operating cost savings.

"PanCanadian brings a wealth of field and operational expertise to this new partnership. Smartcore has developed a software solution that will be of great interest and benefit to the oil and gas industry worldwide," said Nancy Laird, PanCanadian's Senior Vice President Marketing and Information Technology. "Now we have joined forces with ABB, which has the global marketing force, project delivery experience and support to bring the iVision advantage to those already benefiting from Supervisory Control and Data Acquisition (SCADA) products and services."

Integrating the iVision software with ABB's automated systems enables an engineer in Grande Prairie, a production analyst in Lloydminister and an optimization specialist in Houston to work collaboratively with real time information from their own offices on a specific field to maximize production.

An iVision-based upstream production optimization and information system from ABB delivers significant savings when compared to traditional SCADA systems. It offers:
Lower capital investment – with costs starting at $10,000 to automate a gas well
Lower operating cost – less than 50 per cent of traditional SCADA systems
Increased production – typically two to four per cent for a given field – through increased uptime and optimization

iVision provides one solution to meet all the automation needs of an oil and gas producer. The software allows field operators to remotely open and close well valves, adjust compressor speeds, monitor plant alarms and download new gas compositions to remote terminal units.

In short, the iVision software gives people an accurate and immediate picture of their operations. This means minor problems can be identified and corrected before they become major issues. It also saves time and money by reducing the number of well site visits made by field operators. Smartcore provides round-the-clock software and support services.

Smartcore and ABB also offer customers a wellhead-to-desktop SCADA service that provides field control, monitoring and information delivery directly to a client's computer screen. This iVision package integrates existing SCADA equipment and is designed specifically for oil and gas operations.

"We are extremely excited about Smartcore," says Sandy Taylor, Vice President, Petroleum Business Unit, ABB. "ABB's relationship with PanCanadian brings together field experience, business systems technology, proven applications expertise, knowledge of e-business solutions, project execution and on-going support services in addition to extensive operational know-how. With ABB's ability to provide financial services, we have an unparalleled package to offer the global oil and gas industry."

ABB in Canada serves customers in automation; power transmission and distribution; oil, gas and petrochemicals; building technologies; and financial services. Canadian operations employ about 2,500 people at some 40 facilities from coast to coast. Worldwide, ABB Group reported revenues of $25 billion in 1999. With novel IT applications, tailored software solutions, growing eBusiness, and a fast-expanding knowledge and service base, ABB is building links to the new economy. The ABB Group employs about 160,000 people in more than 100 countries.

PanCanadian is one of Canada's largest producers and marketers of crude oil, natural gas and natural gas liquids. Its extensive exploration and production activities stretch form coast to coast in Canada and include a variety of international interests in the Gulf of Mexico, the United Kingdom, Australia and Africa.

Smartcore has established an office at 131 - 9th Ave. S.W. Calgary, Alberta, Canada. Telephone (403) 268-6668, Fax (403) 268-7839.