In today’s fast-changing energy landscape, strong and resilient software solutions are critical to success. We caught up with Richard Evans, Director of Pre-sales and Solution Architecture at Delaware, to get his take on how SAP can support the complex and competing demands of the sector.
In the North Sea, and many other basins globally, oil and gas assets are starting to show their age - and maintaining them requires significant capital investment. To help assess and optimise ageing infrastructure, operators need accurate data fast. This speeds up decision making, and gives leaders greater certainty in those decisions. What is key is that when data is coming from different sources, that it’s clear, digestible and easy to process for the company. That’s where ERP systems win. Solutions such as SAP manage a wealth of data in a robust and efficient way, helping to streamline business operations and processes.
We are also seeing significant consolidation in the industry, with mergers, acquisitions and divestments becoming the norm. This brings months, if not years, of complex disruption to companies as the dust slowly settles. When assets are sold on, changes in software, systems and processes can have a big knock-on effect to teams across the business. The transferability of SAP is a huge advantage in this situation. The modular architecture effectively means that many core processes and workflows can be “lifted and shifted” from one organisation to another with minimal rework, affording continuity and stability for companies going through structural change.
The SAP roadmap has recently addressed some key gaps that those in the industry have been working around for many years. SAP has been enhancing its plant maintenance and asset management capabilities in recent years, and this has made great improvements to the usability in the last 10 years.
There is now better support for complex remote logistics problems - moving materials from onshore to offshore, for example. The more capable Field Logistics offering has replaced and expanded on the ageing remote logistics management (RLM) functionality, although the transition between the two functionalities needs specific focus.
Another area which has been of benefit to the industry has been the focus on shutdowns and turnarounds (TARs). Historically operators relied on external tools and 3rd parties to conduct essential maintenance and improve asset lifespan. But developments in SAP have started to close this gap. The Shutdown, Turnaround and Outage (STO) solution is designed to reliably scope out a TAR, plan for it and execute it - all accounted for and itemised in a connected way. Keeping data in SAP reduces disruption and the need to integrate to third party tools. It’s currently undergoing field testing, but when it’s available in a real operating environment, it has the potential to unlock significant value for TAR teams.
For a software partner, joint ventures (JVs) can be one of the more challenging parts of an upstream operation to manage. The role of a non-operating partner in a JV is relatively straightforward - there is no management of day-to–day operations like drilling, completion or maintenance - as you just get your share, and your associated costs. However, when you have the responsibility of operating a platform or site, it becomes more complex. Not only is an operating company responsible for the management and upkeep of assets in hard to reach places, they also take on the task of competency checker, travel operator, hotel company and caterer, before they have even started to work out how to allocate costs to non-operational partners through the cutback process.
SAP helps to support operating companies by offering comprehensive solutions for asset management, and by integrating with the industry standard toolset for long range planning, permitting, and hydrocarbon accounting.
There is huge overlap in how SAP supports traditional fossil fuel companies and how it supports newer energy sources. Whilst they haven’t been in operation for as long, the processes needed to operate carbon capture units and wind turbines can often stay the same. They are both machines that need people to support and maintain them, in the same way as oil and gas platforms do. Most sub-sectors of the energy industry tend to be asset-intensive, capital-heavy and compliance driven. The transferability of SAP modules from one sub-sector to another are one of its key strengths.
In simple terms, SAP has processes and data structures that support getting the right people and equipment to the right remote locations at the right time to do the right work to keep machines operating safely and reliably. SAP have been used for years to safely keep hydrocarbons in pipes, and it’s the same outlook for other machinery too. With the flexibility it offers, I fully expect that SAP will be adopted widely across the energy industry long into the future, no matter what source or fuel-type is in place.
SAP’s guiding principle of a consistent and connected data model has been the winning formula since the very start. By connecting the process through shared data sets that is no ambiguity and a since source of truth. This means it’s seamless across different areas of the business - whether that’s finance, supply chain, maintenance or HR.
It is even more relevant with the advent of joule and AI solutions that data models are understood. In the Field Logistics app, for example, Joule allows users to track inventory and equipment using plain language questions like “where is my container now?”. This means that interrogation of the data sets can be flawless to deliver the right outcomes and streamline interaction with the traditional apps.
Above all else, it’s the depth of industry understanding that sets Delaware apart. The teams assigned to our energy clients typically have decades of experience in oil and gas environments. The team comprises experts that have led the IT portfolios for some of the most complicated and integrated energy companies on the planet. They have lived SAP as operators, embedding it into the wider enterprise architecture. This brings invaluable insight into the wider ecosystem of applications that best support companies dealing with safety-critical operations.
Other SAP partners can deliver the fundamentals, but do they deeply know what an operator needs? It’s about understanding how daily tasks are carried out in real life, and the limitations of SAPs use in operations. There is no better flex than being able to recognise the bigger picture of how SAP fits in.
Delaware genuinely spend significant time and resource behind the scenes to improve the experience for customers. With its global footprint, Delaware has the size and scale to work across time zones and continents, but it does so with the intimacy of a local partner.
Following customer feedback, we recently established a base in Morocco, which offered the client access to French speaking support at a time zone that suited them better. This was a direct result of us listening to our customers and being agile enough to solve challenges at pace. The length of our relationships with long-standing customers across the world is testament to that.
It’s well recognised that SAP is only truly effective if it’s maintained well and properly adopted by the end users. Success relies on how the software is embedded in the company. To get the most out of SAP, a specialist partner should be on hand every step of the way - to optimise, refine and enhance its capability.
Delaware works closely with its customers, giving them dedicated training and taking the time to build user confidence. We take a long-term and partnership approach to every customer we have, ensuring that we guide them through their ERP journey.
More widely, we offer a structured change management programme, supporting customers through periods of transformation, leading to higher solution adoption and less user resistance.
With the guidance of our expert consultants, we give companies the ability to not just implemet SAP, but to really unlock its power in making their operations safer, smoother and more connected.
With 30 years of experience in SAP and ERP systems, Richard has deep technical and commercial expertise in software strategy, development and delivery. Having spent a number of years in consultancy roles for KPMG, PwC and SAP, followed by almost 15 years at BP, Richard brings a track record of leading software innovation and developing propositions within an operating company.
At Delaware he is focused on defining innovation and solution propositions and taking them to market to help deliver better outcomes for the energy sector.
