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SAP S/4 HANA for Oil and Gas Industry

21 Dec 2017 2:01 pm || 0

SAP S/4HANA for oil and gas companies which can result in many outstanding advantages. The business process provided by SAP S/4HANA transform the execution process from multistep, batch-driven processes with dormancy in terms of key performance indicators into a real-time processes with actionable insights.

SAP S/4HANA provides Oil & Gas companies a proven framework to adopt industry best practices while attaining operational excellence across the full value chain.

Strategy Enablement

  • Accelerate creation of new business models
  • Enter new markets and industries
  • Accelerate synergy for mergers and acquisitions
  • Run live (SAP Digital Boardroom)
  • Reorganize on the fly
  • Achieve greater speed and agility
  • Run Simple (master complexity)
  • Manage riskand help ensure compliance

Business Benefits

  • 2%–5% reduced operating cost
  • 1%–2% increased production uplift
  • 2%–3% reduced capital project costs
  • 5%–10% reduced parts inventory
  • 2%–3% increased refined product margins
  • 10%–30% reduced unplanned downtime
  • 10%–30% increased personnel productivity
  • 2% higher refining and sales margins
  • 6% reduction of hydrocarbon inventory

Risk Management

  • Project delivered in weeks or months, not years
  • Real-time risk and fraud management
  • Finance compliance and tax optimization
  • Collaborative approach to risk management
  • Optimize audit management
  • Increased user adoption from an improved UX

IT benefits and TCO

  • 10times smaller data footprint
  • 10 times faster data backup/restore
  • 7 times higher throughput
  • 50%–70% faster operational reporting
  • Faster adoption through cloud and SAP Fiori UX
  • Reduced TCI, TCO, and risk through the SAP Value Assurance service packages for SAP S/4HANA

Typical Challenges

Traditional ERP

SAP S/4HANA Enhancements


  • Lack of ability for accurately reporting project costs and procurement data increases the risk of uncontrolled divergence and waste.
  • Information related to the project’s finance and logistic is quite a few times inaccurate due to  batch load process; thereby making drill down quite impossible.
  • Directing and providing accurate access to project financial and logistic information providing the ability to drill down into details related to project costs, progress and resource usage.
Capital cost reduced by 2%–3%
  • Delays in project milestones and missing delivery of required gate deliverable occur; identifying the deviations very late.
  • Stage-gate-driven R&D projects along with scheduling the project management operations transparent and accurate view of the true project status.
  • Providing the access for project members for confirming the milestones and network activities simplified using SAP Fiori apps.
Project cycle time reduced by 5%–20%
  • Project delayas aswell as low resource utilization due to no transparency into project resource demands and allocation.
  • In a single application outing together- Capacity planning, detailed project role planning, and project staffing.
  • Enabling real-time access to resource availability, skill sets, and organizational assignment occur during the project staffing process.
Shutdown/turnaround (STO) cost reduced by 5%–15%
  • The Inability for planning the project costs and budgets efficiently as well as tracking the actual versus planned costs leads to budget overruns.
  • Work breakdown structure acts as a basis for hierarchical project accounting; actual project cost visibility by utilizing various applications.
  • Status of a Work Breakdown Structure (WBS) element changes through SAP Fiori apps; actual project costs become more visible using one integrated application.
Incidents reduced by 10%
  • Inability for reporting the project costs and procurement data accurately therefore increasing the risk of uncontrolled deviations and waste.
  • Project financial and logistic information is sometimes inaccurate because of batch load process; as drill down is impossible.
  • It provides direct and precise information about ther financial and logistic status of the projects which helps us to drill down into details such as costs of project, resource used, and progress.