LUKOIL Overseas Holding Optimizes Oil Field Development Projects with Integrated Project Management
 
Oracle 1-800-633-0738
Find an Oracle Specialized Partner
Oracle Customer Programs
 
 

LUKOIL Overseas Holding Optimizes Oil Field Development Projects with Integrated Project Management

LUKOIL Overseas Group is a growing oil and gas company that is an integral part of the vertically integrated oil company OAO LUKOIL. It is engaged in the exploration, acquisition, integration, and efficient development of oil and gas fields outside the Russian Federation to promote transforming LUKOIL into a transnational energy company. In 2010, the company signed a 20-year development project for the giant, West Qurna 2 oil field in Iraq.

Executing 10,000 to 15,000 project activities simultaneously on 14 major construction and drilling projects in Iraq for the West Qurna-2 project meant the company needed a clear picture, in real time, of dependencies between its capital construction, geologic exploration and sinking projects—required for its building infrastructure oil field development projects in Iraq.

LUKOIL Overseas Holding deployed Oracle’s Primavera P6 Enterprise Project Portfolio Management to generate structured project management information and optimize planning, monitoring, and analysis of all engineering and commercial activities—such as tenders, and bulk procurement of materials and equipment—related to oil field development projects.

 
 

 
 

Challenges

A word from LUKOIL Overseas Holding Ltd.

  • “Previously, we created project schedules on desktop computers and uploaded them to the project server to be merged into one big file for each project participant to access. This was not scalable, as we’ve grown and now run up to 15,000 activities in numerous projects and subprojects at any time. With Oracle’s Primavera P6 Enterprise Project Portfolio Management, we can now work concurrently on projects with many team members, enjoy absolute security, and issue new baselines for all projects and project participants once a week, with ease.” – Sergey Kotov, Head of IT and the Communication Office, LUKOIL Mid-East Ltd.

  • Strengthen the company’s planning and monitoring capabilities by managing each oil field development project as a single project with numerous subprojects, such as for drilling of oil wells, installation of electrical power systems, construction of tanks to store oil, and laying of pipes to transport oil
  • Get a clear picture of dependencies between each project and its subprojects by the weekly rescheduling of 10,000 to 15,000 project activities that the company runs simultaneously
  • Monitor capital construction projects in real time—such as rebuilding infrastructure oil field development in Iraq—by enabling 30 schedulers in offices, located in different countries, to use the project management tool concurrently
  • Confine tasks that a project member can edit to those attributed to his or her role in the project while enabling each project member to view all data—providing visibility and ensuring data integrity
  • Provide the means for comprehensive cost control by integrating project management and enterprise resource planning

Solutions

  • Deployed Oracle’s Primavera P6 Enterprise Project Portfolio Management to optimize the planning, monitoring, and analysis of all engineering and commercial activities—such as tenders, as well as bulk procurement of materials and equipment—related to oil field development and capital construction projects, providing the company with precise data for the progress of each tender and procurement order
  • Facilitated managing dependencies between projects by enabling the general scheduler to reschedule all projects and subprojects once a week, realigning 10,000 to 15,000 project activities that the company runs at any time
  • Optimized organization of several departments for planning and monitoring capital construction projects in Iraq and Dubai (including drilling, construction, and provisioning in pre-operational phases), as well as noncapital construction projects and related subprojects
  • Enabled 30 schedulers and cost managers to implement project management procedures on 14, concurrent, major construction and drilling projects in West Qurna-2 (Iraq), substantially improving collaboration and integration between departments
  • Facilitated structured project management information by defining clear rules about what users can do and how information is structured
  • Replaced Microsoft Project and a paper-based system with a complete solution that provides structured project data
  • Established distinct user profiles to determine who is allowed to create projects, link projects to each other, edit projects, and pull weekly management reports—improving data integrity and security
  • Enabled departments, such as those for master planning and control, capital construction, and prospective drilling to share project schedules intelligently to increase their efficiency
  • Enhanced data security by establishing project management security policies that enable only authorized project members to edit their project tasks, while enabling each project participant to view all project data that are relevant to that individual’s task
  • Enabled the company to monitor project progress in comparison to the projected plan, based on physical project assets to determine if each project is on track to conclude within its time and budget limitations

Why Oracle

"The scale of the West Qurna-2 project required real time processing of large data volumes from many departments. Oracle Primavera P6 Enterprise Project Portfolio Management certainly let us work efficiently and improve standardization and internal regulations related to the implementation scheduling and updating by means of flexible settings and fixed delimitation of access rights to the system functionality among all the process participants" - Sergey Kasyanov, Calendar Scheduling Manager of the Master Planning & Control Office, LUKOIL Mid-East Ltd.

Partner

“Oracle Gold Partner Parma Telecom was key to our successful Primavera deployment, implementing the software’s basic functionalities, such as project content, timeframes management, and cost management, in addition to performing its integration with our enterprise resource planning system and intranet portal within ten months and in accordance with budgets,” said Rafik Baynazarov, head of the master planning and control office, LUKOIL Mid-East Ltd. “The second phase, which is still under way, will deploy functionalities required for controlling early stages of projects, ensuring work is progressing according to the company’s engineering, procurement, construction, and maintenance contracts, as well as monitoring the actual volume of completed work.”