SAP Totes Up Recent Wins in Oil & Gas Enterprise Software

N/A(Walldorf, Germany), a leading supplier of enterprise client/server business solutions, has demonstrated the strength and continued development of its SAP Oil & Gas solution through the success of three global customers that are productive with the solution. Caltex Petroleum Corp., Mobil Corp. and <%=company%> depend on the SAP Oil & Gas solution to manage their core business processes as well as petroleum-specific processes. SAP developed the SAP Oil & Gas solution with leading customers and partners over the past several years, expanding the solution to offer customers the industry-specific component IS-Oil. SAP continues this collaboration to further enhance the solution.

"Our customers, including all 10 of the oil and gas companies in the Fortune 50, depend on the SAP Oil & Gas solution for their core business processes and petroleum-specific processes," said Dieter Rafalsky, VP of the oil and gas industry business unit at SAP AG. "Our complete solution provides the day-to-day industry-specific functionality needed to run petroleum companies of all sizes, and we continue to enhance the solution to meet the changing needs of our customers."

Caltex Petroleum, a leader in the Asian-Pacific petroleum markets, is implementing the SAP Oil & Gas solution to streamline its operations and improve its entire business process. Currently, Caltex is using the SAP Oil & Gas solution to address industry-specific requirements such as transportation, storage and delivery, as well as to manage its finance, controlling, materials management, asset management, and sales and distribution operations in Asia and South Africa. "It completely meets our core industry business needs," said Larry Bertagni, regional coordinator, business systems for Caltex SE Asian.

Mobil, a global integrated energy company with $66 billion in annual revenues, is replacing over 400 legacy systems with the SAP Oil & Gas solution in its U.S. exploration and production, marketing and refining, and financial operations. Because of the successful implementations of SAP Oil & Gas in several international locations since 1996 and to gain Year 2000 compliance, Mobil selected SAP Oil & Gas as the solution for its U.S. affiliate. When the global implementation is completed, more than 3,600 Mobil employees will use the SAP Oil & Gas solution for sales and distribution, finance, controlling, asset management, materials management, production planning, project systems and some human resources functionality. Mobil's current plan is to begin the U.S. rollout in November 1998 and conclude in June 1999.

"SAP was the best option to meet our needs for a fully integrated solution," said Mike Brown, SAP project manager for Mobil. "With the SAP Oil & Gas solution, for the first time we will have timely and reliable information available for the entire U.S. operations, which will enable business process standardization and improved decision-making."

Shell, the world's largest oil company with $170 billion in annual revenues, has installed SAP Oil & Gas at approximately 20 sites around the globe, with 10,000 employees now using the integrated business solution. "We have experienced a wide variety of benefits throughout the world due to our SAP Oil & Gas implementation," said Simon Hathrell, SAP manager at Shell International Petroleum. "We have seen cost savings through a more efficient supply chain and through the streamlining of administrative processes. For example, the SAP Oil & Gas solution enables us to handle complex processes that are very specific to the oil industry, such as temperature-density corrections and bulk transportation."

SAP Oil & Gas Solution
The SAP Oil & Gas solution comprises core SAP R/3 applications and the industry-specific component IS-Oil. SAP R/3 integrates an enterprise's entire operations in an overall system for planning, controlling and monitoring. IS-Oil addresses the critical supply chain needs of the oil and gas industry with upstream, downstream and oil-field services solutions that link the entire hydrocarbon supply chain, from acquiring, producing and trading to commercial and retail customers. Designed to lower costs and enhance performance in all aspects of the customer's core business, SAP Oil & Gas also improves decision-making ability by providing customers with real-time information. The SAP Business Framework provides interfaces and integration technologies, allowing customers to extend their SAP solution with existing and third-party software to further meet customers' needs.

The SAP Oil & Gas solution enables oil and gas companies to support the majority of their information-processing requirements with one open, scalable, integrated package. The functionality includes marketing and refining bulk transportation management, exchange handling, commodity-based pricing and bulk distribution requirement planning.

In addition, the solution offers joint venture accounting for the exploration and production business segments. It processes joint-venture business events from procurement to construction, capitalization and subsequent production, and facilitates revenue and expense distribution to joint-venture partners.

Edited by Nick Basta