e-Business in an international oil company

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e-Business in an international oil company
22.04.2002 WTO Seminar on e-Business Geneva M
orten Sven Johannessen, Statoil mosvejo_at_statoil.co
m
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Statoil some facts

• Established in 1972
• Headquarters in Stavanger, Norway
• Partially privatized in 2001 through IPO process
• 16,700 employees in 23 countries
• Production/Reserves 1 mmboepd/4.3 bn boe
• Marketing 2/3 of Norwegian gas volumes
• Worlds 3rd largest crude oil seller

Integrated oil and gas company with strong EP
focus www.statoil.com
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Why does Statoil need e-Business?

• Globalisation of industry.
• Reduce cost of extracting, refining and marketing
  oil and gas.
• Maximize usage of scarce and disbursed resources.
• Take advantage of technical advances in IT and
  telecommunications.
• Reduce risk and mitigate best practice in
  operations and Health Safety and Environment
  (HSE).
• Offer training and consistency in information
  distribution throughout the
• company, regardless of geography and time-zones.

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e-Business in Statoil

• e-business
• e-commerce
• b2c (business to consumer)
• b2b (business to business)
• b2e (business to enterprise, business to
  employee)
• e-collaboration
• e-learning

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Statoil's e-business Roadmap
Create
Harvest
Foundation
Build and operate
..1999
2000
2001
2002 ..

• Reap benefits with
• Supply chain
• Collaboration
• Remote operation
• Borderless information management and effective
  knowledge sharing

• Implement new work-processes
• Fully integrated SAP solution
• Organization change
• Organization readiness

• Identify opportunities
• Organise and prioritise
• Develop skills and awareness
• Launch pilots

• Take ongoing and new e-business initiatives
  "live"
• Measure, improve, expand
• Integrate e-business into corporate and FO/RO
  strategy processes

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E-business activity matrix Statoil
Clearing
E-engineering
E-fields
LicenseWeb
E-learning
High
Market information
Portal framework
Phoenix
E-learning
E- Collaboration tools
Statoil Card
BOB extranett
E-logistics
Troll Swing/ Lifting accounts
Mat.master/ Tech.info
Beringen
Real Time systems
Distribution
Licence web
NetShop Norway/Sweden
Value Creation Potential
Upstream Market
E-fieldspilots
Trading paper deals
Tampen improvement
Recruiting
Emden Hub
E-travel
NetShop Denmark
Tradenet
Electronic doc.
NetShop Ireland
Eureka outside Norway
Eureka Norway
Dispatch Web Request
Netshop Lubricants
Low
Difficult
Easy
Initiative fully operational, active users exist
Ease of implementation
Initiative decision has been made. In
development phase.
Planned initiative. Final go-decision not made
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Where are the benefits?

• Reduction of internal transaction costs
• Reduction of external transaction costs
• ..result, reduced costs
• Improved and simplified flow of information and
  data
• High speed access to information
• Standard infrastructure and standard
  collaboration tools
• ..result, better, quicker safer and more cost
  efficient information
• Harvest further benefits from existing systems
• ..result, "operational excellence" competitive
  edge

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What are the expected effects?

• Reduced cost of exploration, production, refining
  and marketing
• Reduced time to oil, better recovery rate
• Improved HSE, reduce accidents and unwanted
  situations
• better competitiveness
• How will this affect our business?
• Increased cooperation on establishing standards
  and processes
• Visibility of suppliers and accessibility of
  suppliers on Marketplace infrastructure
• Ease of operation, faster time to market
• Ease of starting up in new locations, better
  utilization of existing infrastructure

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Effects of taxation on business transactions
crossing borders

• Effects on procurement of tangible goods across
  borders
• No intended effects,
• but may lead to consolidation of suppliers,
• creates an opportunity for good local suppliers
  in new markets
• Effects on procurement of in- tangible goods
  across borders
• Internet as delivery platform,
• Intellectual property will be distributed using
  the Internet, Intranet and
• Extranet, difficult to track. Companies will
  optimise according to need, i.e. on
• managing access through corporate wide Intranet
• Internet as business driver for new products and
  services
• Tangible goods become digitised and transformed
  into services, i.e. valves
• machinery, pipelines. Physical goods will become
  value add services
• managed over the net

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Effects of taxation on business transactions
crossing borders

• Effects on services
• Geographically disburse
• Best of breed services bought where services are
  offered, i.e. engineering
• and IT from India, service centres (call centres)
  from Eire. Using the Internet
• as transaction, delivery and communication tool
• Bottom line,
• we optimise as we have always done, but do not
  exploit the net to avoid taxes

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The road to b2b e-commerce in Statoil
New user interface and internal catalogue
B2B Pilot
Regional catalogue
eOil
Global e-commerce solution for the oil and gas
industry
Trade Ranger
Horizontal marketplace in Scandinavia
Horizontal marketplace
2001
2000
1999