Powerful, Flexible Solutions - HCL Technologiesthrough to Information Technology Outsourcing (ITO) In all of these approaches, HCL AXON combines unrivalled ... Business Process Outsourcing

GLOBAL BUSINESS TRANSFORMATION FOROIL & GAS ORGANIZATIONS

Powerful, Flexible Solutions

Accelerate Value

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GLOBAL BUSINESS tRANSFORMAtION FOR OIL & GAS ORGANIZAtIONS

Radical swings in commodity prices are disrupting business

planning and operations for every business in the oil & gas

industry. Success requires the ability to respond quickly and

efficiently to these dynamic conditions. For example, upstream

companies are challenged by severe resource constraints

while struggling to increase production and replace proven

reserves. Meanwhile, downstream companies are facing

working capital and margin pressures.

Marginal improvements to current processes won’t overcome

these challenges. Business transformation, delivered by

HCL AXON and enabled by SAP, creates the vital improvements

in efficiency and capability that are necessary to outperform

the competition in these challenging times.

Successful business transformation requires deep industry

knowledge, the application of lessons learned from previous

implementations, and innovative tools and approaches that

are proven to produce lasting change. HCL AXON resources

have unmatched experience driving oil & gas companies’

SAP enabled business transformation programs. Additionally,

only HCL AXON offers the Rapid Deployment toolkit (RDt),

our proprietary, SAP based solution specifically designed

to address the unique challenges in the oil & gas industry.

Combined with our cross industry asset and personnel

management solutions, iMRO and iCREW, HCL AXON is

uniquely capable of delivering the promised benefits of

business transformation.

Only HCL AXON offers the Rapid Deployment Toolkit, specifically designed to address the unique challenges

in the oil & gas industry

HCL AXON consultants have exceptional experience implementing SAP solutions in the oil & gas industry

HCL AXON – DELIVERING BUSINESS TRANSFORMATION TO THE OIL & GAS INDUSTRY

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ABOUT HCL AXON

Accelerate ValueWe recognize that different organizations require differing outcomes from their ERP investment, and as such we provide different solutions to best address these needs:

■ Consulting – Design, deployment and optimization of world-class business practices

■ transformation – Delivering fundamentally improved levels of operational performance through the implementation of world-class ERP platforms

■ Refresh – Rapid implementation of pre-configured industry specific business solutions based on world-class ERP platforms

■ Re-platforming – Migrating legacy solutions onto today’s leading technology platforms

■ Sustainment – Complete heterogeneous systems applications management capabilities from remote system monitoring through to Information Technology Outsourcing (ITO)

In all of these approaches, HCL AXON combines unrivalled experience in deploying the world’s leading enterprise application software with significant industry experience to ensure that our programs deliver value for our customers, faster and more cost effectively than any of our competitors.

true Global DeliveryHCL AXON operates as a single global organization allowing us to deploy consulting teams which leverage proven industry and solution best practices from our offices around the world. We fully understand that successful implementation projects require both on-site client engagement to drive process design and business change while simultaneously leveraging the significant cost and time zone benefits associated with cost effective off-shore and near-shore, round-the-clock delivery centers. Our global delivery model does not treat off-shore as an afterthought; we fully integrate our off-shore capabilities into our implementation and application management methodologies to ensure that the value of the integrated on-shore/off-shore model is fully optimized.

Financially Stable and RespectedHCL AXON is a wholly owned subsidiary of HCL Technologies, a $6 billion global technology leader with over 88,000 employees. HCL is not only financially robust; it is also globally recognized for its revolutionary management practices which focus on trust, integrity and the empowerment of our employees. This approach, which we call Employee First, is the subject of one of the most frequently taught Harvard Business School Case Studies.

It is all about certainty of outcomesUltimately our engagements are driven by the need to deliver certainty to our clients:

■ On Value■ On time, to Budget ■ Guaranteed Service Levels■ Committed Cost Reductions■ Realized, Cashable Benefits■ Achieved Business Metric Improvements

HCL AXON regularly contracts to the delivery of specific outcomes – whether it is a reduction in a call center’s average call handling time, guaranteed infrastructure management cost-reductions or a particular cost saving or performance improvement.

HCL AXON is a global pioneer in leveraging leading technologies to drive value realization. Our value management approach accelerates the realization of benefits from your investments by aligning IT to your clients’ required business outcomes. We provide the complete range of consulting, hosting and Business Process Outsourcing (BPO) services, necessary to define, realize and sustain real business change. Our unique delivery model integrates on-site business transformation consulting services with near-shore and off-shore technical development and support capabilities, to ensure that our clients receive the optimal solution at the right price point.

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Exploration and Production (E&P) Because of the long term increase in demand for oil & gas, the industry

faces a shortage of qualified workers and operating assets and

equipment. At the same time, E&P companies need an integrated view of

leases and royalties payments, joint interest billings and revenues, and

well data to understand asset profitability so they can combat oilfield cost

inflation and make better operating decisions as reserves become harder

to find and exploit. HCL AXON provides the industry knowledge as well

as the expertise with SAP to help E&P companies meet these challenges

through practical yet innovative business solutions.

Marine Marine services company’s operations can be optimized through

improved cash management, integrated invoicing and collections,

and improved reporting. Profitability can be tracked and maximized

by coupling crew rates, tows and boats. Whether in blue or brown

water, HCL AXON’s experience in the industry ensures that marine

services companies achieve dramatically improved results. As supply

chain challenges arise—increased fuel costs, weather and regulatory

delays, or assets going out of commission—the flexibility of SAP and the

expertise of HCL AXON provide you the solutions you need to efficiently

re-route, re-quote, or re-assign the goods as needed.

Oilfield Services (OFS) and DrillingCycles of expansion and contraction often result in high levels of start

up, IPO and M&A activity for oilfield services companies. In peak times,

experienced personnel are scarce and inching closer to retirement each

year. Asset tracking and utilization is top of mind as managers struggle to

capture as much demand as possible. In down times, coping with excess

capacity and under utilized resources can make the difference between

mere survival and success. HCL AXON has made its mark working with

OFS companies to overcome these challenges and lay the groundwork

for long term success in any market condition.

HCL AXON – ADDRESSING THE CHALLENGES...

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Midstream The variety of midstream assets, from pipelines and transport vessels,

to gas plants and compression stations, regularly present challenges

to midstream companies trying to manage and control these diverse

operations efficiently. Accounting, reporting and compliance requirements

must be tracked and any divergences accounted for. Many midstream

companies also face the challenge of integrating trading operations into

their accounting and supply systems. HCL AXON brings a unique blend of

experience ranging from transportation and linear asset management, to

fluency with a number of industry leading trading platforms, and to FERC

accounting for interstate pipelines. As such, we are uniquely qualified to

assist midstream companies with their business transformation efforts.

Oil & Gas Secondary Distribution (OGSD) Secondary distribution of oil & gas products demands visibility of all

aspects of operations in order to deliver maximum profitability. Diligent

planning is needed to ensure storage, transfer and transportation is

available and scheduled to meet customer demands. Processes must

integrate sales, scheduling, internal stock monitoring and planned/actual

volumes to keep a secondary distribution business operating smoothly.

HCL AXON leverages its deep process knowledge and SAP expertise

to provide tailored workbenches that allow our customers to efficiently

manage their operations and margins.

Refining and ManufacturingRefineries present immense challenges due to their complex operations,

stringent asset and operations integrity requirements and compressed

operating margins. Maintenance, shutdowns, start ups and change

overs must be carefully planned, scheduled and executed with precise

coordination between employee and contract crews. HCL AXON offers

particular expertise with the iMRO for Oil & Gas solution as we are co-

developers with SAP and has particular insight into the future of this

unique and valuable extension of the SAP Maintenance, Repair and

Overhaul solution. iMRO represents HCL AXON’s unique capabilities

for coupling deep industry knowledge, SAP expertise and our business

transformation methodology to provide unique SAP based solutions to

pressing industry problems.

FACING THE OIL & GAS INDUSTRY

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HCL AXON – THE BUSINESS TRANSFORMATION EXPERTS FOR OIL & GAS

the HCL AXON oil & gas practice is the strongest dedicated

SAP implementation and support partner. Our reputation

is built on proven expertise and a full understanding of the

business drivers in the major segments of the industry.

The HCL AXON Oil & Gas practice is the strongest dedicated SAP implementation and support partner

HCL AXON consultants have exceptional experience implementing

SAP solutions in the oil & gas industry. We have provided solutions

for clients across the entire spectrum of the oil & gas industry and

in all major business theaters of the world. Our lean and nimble

consulting teams work with clients to deliver innovative business

solutions to companies looking to transform their business and

leverage the full potential of their SAP investments. What’s more,

we speak the language of our clients and can condition our fee on

successful delivery.

With such a significant breadth of industry experience and

implementation success, we have become the partner of choice for

companies seeking to deploy SAP based solutions in the oil & gas

industry. We have amassed a record of leading accomplishments

pertinent to oil & gas and OFS companies:

nHCL AXON is SAP’s Business All-in-One partner for oil & gas

nAn HCL AXON client was the subject of SAP’s 1st Business

Transformation Study (BTS) featuring an oilfield services

company

nAn HCL AXON developed solution, Firecall, is one of the most

broadly distributed SAP based applications in one of the world’s

largest oil & gas companies

nHCL AXON is SAP’s Business All-in-One partner for the

RapidHR preconfigured SAP HR solution

nHCL AXON performed the first SAP Mobile Asset Management

(MAM) implementation in North America

nHCL AXON is SAP’s development partner for SAP iMRO

(maintenance, repair and overhaul)

nHCL AXON is a leader in Linear Asset Management

nHCL AXON performed the largest global implementation of SAP

Shift Planning.

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SOLUTIONS FOR THE OIL & GAS INDUSTRY

RDT for Oil & Gas drives your SAP-based business transformation effort to more rapidly yield significant business benefits

Maintenance, Repair and Overhaul In tandem with SAP, HCL AXON developed iMRO, the industry leading solution for complex Maintenance, Repair and Overhaul (MRO) operations. iMRO extends and enhances the SAP ERP application by providing enhanced user interfaces and customized processes specifically suited for the unique industry requirements for plant maintenance, maintenance engineering, planning and operations. With iMRO in place, MRO operations achieve optimal performance and profitability.

Corporate Portfolio Management SAP Resource and Portfolio Management (RPM) for Corporate Portfolio Management is ideally suited for the Capital Planning, AFE Approvals, and Resource Management requirements of the oil & gas industry. The solution includes a proven platform for managing all aspects of complex capital projects. With the addition of HCL AXON’s proprietary integration methodologies and extensive industry experience, the benefits of a rapid implementation are realized and project risks are minimized.

Business Planning & Consolidation SAP Business Planning and Consolidation (BPC) is a key component of the SAP Business User suite of products and is the industry leading solution for planning, budgeting, consolidation, reporting and analysis at all levels of the organization. HCL AXON’s resources have implemented SAP BPC for several of the world’s largest oil & gas enterprises as well as for hundreds of organizations in a variety of industries worldwide. Oil & Gas companies will particularly benefit from improvements to their Capital Expenditure Planning, Asset Optimization and Utilization Planning, Production and Reserve Planning, M&A Planning, Management and JV Reporting and Analysis.

Human Capital Management SAP Human Capital Management (HCM) is the leading solution in the oil & gas industry for effective management of human resources. Successful organizations need enhanced capabilities to recruit, develop, deploy, and retain personnel. As the workforce ages, keeping workers with specialized skills and qualifications will be critical to operational excellence. With SAP HCM, mangers can identify these resources, plan for succession, develop skills through

training, and retain and reward top performers. HCL AXON’s preconfigured RapidHR solution, developed from our experience implementing HCM solutions at some of the world’s largest organizations, delivers the rapid transformation of the HR function necessary for success. Additionally, the HCL AXON developed iCREW solution helps O&G companies with the administration, assignment, planning, deployment and payment of crews.

Business Process OutsourcingHCL AXON offers a full range of Business Process Outsourcing (BPO) services. Many organizations in the Oil & Gas industry can realize significant cost savings by outsourcing non-core functions such as finance, accounting, MIS reporting, transaction processing, procurement services and order management. Infrastructure Management ServicesHCL AXON’s global delivery organization uses a collaborative, co-sourcing approach to provide both remote and on-site services for IT infrastructure management. We offer flexible engagement models based on each client’s specific goals and requirements. As a result, HCL AXON can deliver integrated Applications and Infrastructure management service on demand.

Rapid Deployment toolkit (RDt) A pioneer in the use of pre-configured solutions in the oil & gas industry, HCL AXON developed RDT for Oil & Gas by combining SAP best practices and a deep understanding of the industry’s business processes. RDT for Oil & Gas provides a flexible platform to jump start a company’s SAP implementation and integrate core business and back-office functions. RDT provides out-of-the-box SAP enabled business processes common to virtually all oil & gas related businesses, but with the addition of enhanced user interfaces and extended industry segment specific functionality.

RDT for Oil & Gas drives your SAP-based business transformation effort to more rapidly yield significant business benefits and instill lasting change and takes full advantage of HCL AXON’s proprietary and proven Design by DemoTM blueprinting approach. Equally important, RDT provides the foundation to take advantage of all the other oil & gas industry solutions available from SAP whether you are implementing SAP for the first time or extending SAP to your remote operations and standalone business units.

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TESTIMONIALS

We knew that it would be a daunting task for an IT service provider to figure out our business and IT requirements when we had employees who weren’t even officially hired and were scattered across 21 countries.

HCL AXON wholeheartedly embraced the challenge and exceeded our expectations, getting 11 countries transacting business and 10 remote locations communicating - all within our 90 day timeframe. They were more like a partner rather than a vendor.

Jim Claunchformer Chief Financial Officer PowerWell Services

Our transition to SAP is viewed as a strategic initiative for GulfMark. We were immediately impressed with HCL AXON’s shared sense of urgency for our issues and their desire to ensure success. By taking the time to fully understand the pressures and drivers of GulfMark’s marine business and using their Rapid Deployment Toolkit, they helped us to quickly identify the most effective approach to business process automation.

Our team shared passionate discussions on approach and implementation issues as the project progressed, all with the same goal – find the best solution for our business. HCL AXON helped us to lay an SAP foundation for GulfMark’s future.

Carla MashinskiFormer Chief Accounting OfficerGulfMark Offshore

Even though I had 10 years experience managing SAP projects, I was skeptical that we could make a 90 day global project successful. What I learned is that SAP can be implemented out of the box, without modification and grow with a start-up company as it goes from making $70 million to making $300 million in two years.

Sheree FieldsCIO of The Expro Group (parent company of PowerWell Services)

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HCL AXON delivers SAP enabled business transformation for organizations of all sizes and in all segments of the oil & gas industry.

Our implementation methodology has proven successful in driving significant business benefits for organizations as diverse as specialized oilfield service providers on up through the largest, fully integrated companies in the industry.

In every instance, HCL AXON tailors its approach to the unique challenges and objectives of the organization and develops an approach based on driving business benefits.

HCL AXON OIL & GAS CLIENTS

Integrated & National Oil Companies

Exploration& Production

OFS, Drilling& MarineServices

Midstream Refining& Chemicals

Distribution& Retail

BP • Chevron • ConocoPhillips • ExxonMobil • Petronas • Qatar Petroleum • Saudi Aramco • Shell

Anardako

Apache

Abbot Group

ASCO

Cameron

Expro International

GulfMark Offshore

Noble Drilling

PowerWell Services

Copano Energy

Enron

MidAmerican Energy

Solarc

Arch Chemicals

BASF

ChevronPhillips

Infineum

LyondellBassell

Solvay America

BHPetrol

Heritage Propane

Sun Coast Resources

Titan

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CASE STUDY CONOCOPHILLIPSthe ClientConocoPhillips is an integrated oil and gas company with over 30,000 employees working in more than 30 countries to deliver energy to the world. By combining strategic capital investments with industry leading business practices, ConocoPhillips ensures exceptional results in every aspect of its operations.

Project ObjectivesIn 1998, as part of its drive to continuously improve operational efficiency, ConocoPhillips implemented an integrated SAP procurement solution. Over time, numerous improvements and efficiencies were introduced into their procurement functions. However, after 2005, company leaders realized that there was a significant business case for standardizing procurement processes and deploying those standard processes across all business locations. In further support of this business case, the Project set a goal of increasing the automation of the procurement cycle, thus reducing the amount of user interaction with the system while at the same time ensuring that necessary controls were in place.

The P2P Project was initiated as a result of the business case developed around the following four key principals:

nSpend Capture & Spend Leverage

nProcurement Process Standardization & Automation

nProcurement Process Compliance & Measurement

nProcurement Process Governance

All aspects of procurement processes needed to be addressed to fully enable automation, spend leverage, standardized processes, and compliance across the procurement cycle. These included:

nMaster Data: Materials, Contracts / OLA’s, Prices, and Catalogs:

– Rationalization

– Standard definition and characterization of materials and catalog Items.

nMaterial and catalog search capability (driven by tools) to drive material/catalog item selection during requisitioning:

– SAP’s MDM tool was configured to store materials and catalogs and enable efficient and effective item searches.

nUser Behaviors and System Interaction:

– How the system was used for procurement by the users

– Did staff understand and follow standard processes

– What additional training was required and what behaviors needed to change.

Based on these criteria, the fully developed business case for the P2P Project promised millions of dollars in recurring benefit to the business.

Project ScopeThe P2P Project is notable for its size and complexity. The following facts and figures demonstrate the challenge that ConocoPhillips and HCL AXON overcame by exceeding the results projected in the business case:

Organizational Scope The program covered the entire ConocoPhillips enterprise and every physical location worldwide. Over 15,000 SAP users were impacted by the program. In addition, a major acquisition was migrated onto ConocoPhillips’ business processes and SAP environment.

Software ScopeConocoPhillips runs a single instance of SAP for their Global Operations and just over 100 SAP and non-SAP programming objects were touched over the 3 phases of the program. Module ScopenFinancials, controlling, and joint venture

accounting (JVA), plant maintenance, drilling operations, well maintenance and procurement

nProcurement, SRM, MDM, financials, controlling, and joint venture accounting (JVA), plant maintenance, drilling operations, well maintenance

Geographic ScopeThe Procure-To-Pay (P2P) Project is a global program impacting the following regions:

nNorth America – US (including Alaska) – CanadanEurope – Germany – UK – Ireland – AustrianNorth Sea Operations – Norway – ScotlandnAsia Pacific – Indonesia – Australia – China

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OutcomesHCL AXON provided the following services during the over three year life of the Project:

nIntegration Management and Project Stewardship

nGlobal Solutions Deployment and Deployment Leadership

nStandard Process Design

nSolutions Design and Build

nSolutions Architecture Design and Build

nProcurement Data Mining, Extraction, and Analysis.

As a result of the P2P Project, ConocoPhillips is already exceeding the KPI and LI targets that were set at the beginning of the deployment phase. Specific benefits realized include:

nSignificant procurement spend reduction through contract compliance and supplier

leverage

nImproved financial planning and reporting

nImproved process efficiencies

nReduced inventory holdings

nRapid integration of new businesses.

The P2P Project is a tremendous success by every applicable measurement. In particular, when measuring the Project outcomes against the business case predictions, the P2P Project substantially exceeds expectations.

The P2P project represents another successful step in the long term transformational relationship between ConocoPhillips and HCL AXON

Key ChallengesBecause of the broad nature of the P2P Project, both the Project team and the business users had to maintain a high degree of discipline to obtain the benefits defined in the business case. Examples of this discipline included:

nEnhanced stewardship of deliverables

nDetailed tracking of specifications (technical and functional)

nEarned-value project tracking

nAccountability for deliverables at all levels of the program.

An unprecedented mobilization of both consultant and client resources was required to deploy the procurement standards to each business unit and to everyone who touched the procurement process. HCL AXON led a majority of the deployment activities for the program both in North America and around the world.

The user enablement process also required a different approach to delivering benefits. In order to deploy a solution that addressed user needs, a rigorous design phase included the following:

nHistorical procurement data was analyzed

nProcurement data mining tools were defined and built

nHistorical procurement data was analyzed for user tendencies that violated the standard processes

nSupplier data was analyzed to determine electronic supplier enablement opportunities

nTraining plans were developed by the top procurement process users (especially for requisitioning).

HCL AXON is the best in the world at creating industry-specific, end-to-end platform solutions that deliver business performance

[email protected]

© HCL AXON 2011 (All references to HCL AXON include former Axon)

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Documents

Powerful, Flexible Solutions - HCL Technologiesthrough to Information Technology Outsourcing (ITO) In all of these approaches, HCL AXON combines unrivalled ... Business Process Outsourcing