Introduction of SAP UOM to allow SOCAR reduce production loss risks in Azerbaijan and abroad

Baku, January 28, AZERTAC

SAP, one of the leaders of the enterprise applications market, and the State Oil Company of Azerbaijan (SOCAR) announced about the launch of the project on introduction of complex solution SAP Service and Support for production management on the basis of solution SAP UOM (Upstream Operations Management).

SAP reports that the solution is designed to reduce losses in the processes of production and extraction, as well as to reduce the risk of such losses by 80% due to improved transparency and efficiency of the received information and formation of single reporting and analytics.

SOCAR, one of the 50 largest participants in the global oil and gas market, is one of the first SAP CIS large customers in Azerbaijan: within the large-scale transformation of key business processes in 2008, it started introduction of a SAP solutions complex, which became a unified management platform of the Company. As the business grows there is a need for further development of introduced solutions, including the creation of a single information system based on SAP UOM.

SAP UOM will be introduced implemented in the SOCAR central office and 9 oil and gas extraction divisions, both in Azerbaijan and abroad. According to preliminary estimates, due to introduction of SAP UOM the oil and gas production will become more predictable, losses in the process of production and 80% risks of such losses are going to reduce. Before the introduction of production management solution SAP UOM, more than 50% of the information was transferred by phone, and data on measuring and actual volumes of production were recorded only in paper documents. Report making took 10 to 30 days. It was not possible to build a unified picture of the processes of production and repair charts and obtain the history of actions on each well.

The transition to powerful technology platform SAP UOM will allow staff to record and measure the parameters of wells, data from the meters and measuring devices in several ways: by using the mobile device, automatically on the basis of data from information systems and manual data entry. There will appear the possibility for operational management of the well stock, the formation of material requirements, production control. The Company's management will be able to receive at any time the reports on production of mobile devices, due to which the efficiency and accuracy of decisions will increase.

"With successful experience in building the business processes on the SAP platform, SOCAR now focuses on the growth of performance and active integration into the global market. A new project on introduction of SAP solution by SAP Service and Support professionals will allow us to apply the best international practices for efficient, safe and profitable process of production," said Suleyman Gasimov, SOCAR vice president on economic issues.

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