RioInfo 2011IT Opportunities in Nigeria Oil & Gas

Intro….

Management Systems Consulting & ITMS – ISO 9000, ISO 14000 & OHSAS 18000 family

Enterprise Software

Intro …2 Inyang Effiong

Head of Projects New Projects Running Existing one Framework Generation

Background 10 years Oil and Gas 11 years in Management Systems Programming, Systems Analysis, Engineering,

Production, MS

Nigeria Oil & GasUpstream

2.4m bpd current 3-4m bpd capacity

Downstream Mostly retail & Distribution Local refineries all NNPC owned

E&P NNPC – Nigeria National Petroleum Company

IOCs Royal Dutch Shell, ExxonMobil, Chevron… Addax, Petrobras!

Nigerian? ConOil, Afren, Midwestern Oil&Gas, Septa, Seplat,

Oando……

Service Companies

EPC contractors

Others

NNPCOwns shares in the IOCS (IOCs operate)

20,000 plus staff

Has divisions that cut across all aspects of the business

Has approval rights on spending by IOCs (OPEX and CAPEX)

IT Landscape - Budgets

IOC budget exampleIOC A – US $41 M CAPEXUS $87 M OPEX

IOC BUS $21 M overall

IT Landscape – App Families 1

Finance incl Supply Chain

EngineeringProject managementProcessStatic & Rotating Eqpt

Geophysics and Related

IT Landscape – App Families 2

Subsurface and Wells

ProductionMaintenanceMonitoring

General Apps

IT Procurement- 1For IOCs, Driven from Corporate HQ

Paris, London, Houston, Den Haag

Legacy Continuation Process Software, Subsurface tied to

Service ProvidersInvestment in Training

IT Procurement- 2For New Companies

Likely to copy IOCsStaff parentageFear of change/unknown

Openings in Market?

Yes!!New CompaniesExisting IOCs

All need IT ServicesLow IT penetrationModern technology/paradigms

Openings in Market?Areas

Traditional AreasFinanceEngineeringOthers

Innovation (examples)Security/Access ControlIntegrated Systems

Openings in Market?How

Procurement Process Tender NNPC oversight

New Companies (no Legacy) Results oriented Local decisions

Procurement processContracts above a certain sum go

through an independent body

Have to be competitive bidding

Local content required (NCD)

New OperatorsNew fields

Inherited ‘Marginal Fields’

Other Positives - 1Changes in the Law

Operators/OwnersEnforcement of several regulations

should open up new areas for IT application

Local labour pool

Other Positives - 2Mobile Apps

No Legacy advantage

Lots of Processes still done manually

Supply Chain Management support presently weak

Success FactorsLocal Presence

Understanding of Oil and Gas Business/Language

Local Regulations (Nigerian Content, Petroleum Industry Bill, Regulator Guidelines)

Medium/Long Term View

Right team on ground

Already on groundMicrosoft

Google

SAP

HP/Dell/NetApp

Several Others

But

Image matters

Brasil =

FootBall!