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SAP IS-Oil Introduction

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Training Agenda
Day Module
1
Introduction to IS-Oil
Marketing, Contracts, Order Entry-MCOE
Marketing, Accounting , Pricing - MAP
2
Hydrocarbon Product Management - HPM
Transportation & Distribution - TD
3
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
Exploration
Primary Transport
Refining
Secondary
Transport
Product Storage
Retail
Stations
Crude Storage
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Industry Segmentation
Upstream
Oil & Gas Industry
Downstream
Wholesale Retail
Exploration & Production
Refining Marketing & Distribution
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
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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
198
3
1990 1995
Mobil
Hamburg
2000
20
customers
50
customers
Establish
R/2 Oil
consortium
Establish
R/3 Oil
consortium
100
customers
250
customers
400+
customers
Global
Industry
Advisory
Council
Customer
developments
Joint process
definition
Downstream
Joint process
definition JV
accounting
Downstream
Industry
template
Exploration &
Production
Exchange Recon
Business Service
2001
Industry
Exchange
Standardized
Processes
>500 Customers
>500.000 my SAP
Oil&Gas Users
ITS
Statoil
B2B
Easy Web
Transactions
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Oil & Gas Industry Supply Chain
Refined Products & LPG
Crude
Lubricants
Natural Gas Natural Gas
Exploration &
Production
Supply &
Transmission
Refining &
Manufacturing
Primary
Distribution
Marketing
& Sales
Secondary
Distribution
Retailing
Producer Distributor Refiner Distributor Marketer Distributor Retailer
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SAP Solution for Oil & Gas Industry
IS-Oil Downstream
IS-Oil Upstream
Supply Chain Management
Exploration &
Production
Supply &
Transmission
Refining &
Manufacturing
Primary
Distribution
Marketing
& Sales
Secondary
Distribution
Retailing
Producer Distributor Refiner Distributor Marketer Distributor Retailer
Traders & Schedulers Workbench
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.
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Procurement
/ Exploration
Production Distribution Sales Returns
Mid Term Planning ( Supply Network Planning)
Long Term Planning (Network Design)
Demand Planning
Purchase
Planning
Production
Planning &
Detailed
Scheduling
Allocation,
Transport Planning
& Vehicle
Scheduling
Short Term Demand
Planning
Processing of Purchase, Production, Inventory Management, Distribution, Sales &
Return
PLANNING
OPTIMIZATION
SCHEDULING
EXECUTION/
OPERATIONS
High level Oil & Gas Process
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SAP Solution Landscape for Oil & Gas Industry
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.
IS-Oil TSW APO
Financials
Exchanges
Contracts / Orders
Inventory
Movements
Transport
Demand Planning
(DP)
Supply Network
Planning SNP
Transport Planning
& Vehicle
Scheduling
Production
Planning Detailed
Scheduling
Global Availability
to Promise (ATP)
Collaborative
Planning
APO- Advanced Planner & Optimizer
The areas of demand/supply planning and
forecasting, as well as supply chain balancing
and optimization are addressed in APO.
Usage in specific business lines (e.g. chemicals, gas and lubes)
Interfaces to
external Trading
Systems
Scheduling
Collaborative
Nomination
Ticketing and
Event Handling
Inventory and
Replenishment
planning
Integration to R/3
Process
PLANNING/
OPTIMIZATION
SCHEDULING
EXECUTION/
OPERATIONS
IS-OIL
SAP R/3 with IS-Oil Downstream covers the
processes of order entry, contract
management, inventory management,
transport and movement execution.
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IS-Oil Coverage of Industry Requirements
Company
specific point
solutions

Generic business
requirements
covered by
standard SAP
Common Functionality for the World-wide Oil Industry
Industry-specific
requirements addressed by
IS-Oil
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Integration of IS-Oil
Open
system
Integrated
solution
Client/server
architecture
Comprehensive
functionality
Graphical user
interface
Distributed
applications
Reference
Model
Enterprise
Data Model
Downstream Upstream
IS
Oil
IS
Publishing
IS
Banking
R/3
FI
Financial
Acctg.
CO
Controlling
AM
Asset
Mgmt
PS
Project
System
WF
Workflow
MM
Materials
Mgmt
HR
Human
Resources
SD
Sales
PP
Production
Planning
QM
Quality
Mgmt
PM
Plant
Maint.
IS
Industry
Solution
Multinational
use
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IS-Oil Solutions
Exploration & Production
Upstream
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
Marketing & Retail
Downstream
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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
Acquisition/
trading
Transport Manufacturing
Storage/
Distribution
Marketing
Quotations
Contracts
Order Entry
Pricing
Receipts / Deliveries
Transit Losses / Gains
Inventory Balances
Purchases from
Suppliers
Inventory Balances
Receipts / Deliveries
Feedstock / Crude Purchases
Finished Product Sales
Production / Consumption
Product Specifications
Materials Planning
Receipts / Deliveries
Sales / Purchases
Scheduling of Deliveries
Losses / Gains
Planned Movements
Inventory Forecasts
Taxes
Profit & Loss Analysis
Sale to Customer
Rebates / Pricing
Customer Invoicing
Retail
Shipping
Preplanning
Export
Oil & Gas
Production
Exchange
Contract
Purchase
Contract
Sales
Contract
Producer
Contract
Gathering
System
Supply
Pipeline
Refinery
Exchange
Contract
Sales
Contract
Retail
Stations
Transfers,
Sales,
Purchases,
Exchanges
Commercial
Customers



Pipeline
batches
Lubes
Plant
Chemical
Plant
Bulk
Terminal
Bulk
Terminal
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IS-Oil : Key Downstream Functionality
Distribution
Acquire/
Trade
Transport Manufacture
Store/
Distribute
Market
SAP
Core
MCOE
HPM
EXG
TD
MAP
TDP
MRN
IS-Oil
Marketing, Retail,
Network

Marketing, Contracts, Order Entry
Hydrocarbon Product Management
Marketing
Exchange Handling
Accounting, Pricing
Tariffs, Duties, Permits
Transportation
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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
Thank You