MANGEMENT INFORMATION SYSTEM

PROJECT REPORT ON
“OIL & GAS INDUSTRIES”

Report submitted in partial fulfilment of the requirements for the MBA degree in
Maharaja Sayajirao University of Baroda
Submitted By
PRAVIN VISHWAKARMA (PRN: 8022053474)

SIDHARTH DUBEY (PRN: 8022055280)

SUSHANT PANDITA (PRN: 8021080944)

VIKAS SINGH (PRN: 8022053540)

Submitted To
MR. Pinkesh Parmar
M.S. PATEL INSTITUTE OF MANAGEMENT STUDIES
(Faculty of Management Studies)
THE MAHARAJA SAYAJIRAO UNIVERSITY OF BARODA
 ACKNOWLEDGEMENT

For accomplishing any task and achieving success one requires constant
support and proper guidance from the people around them. Completing the
project report required many people's guidance and assistance, including
professors and friends. The cooperation of the people involved is the very
reason for the completion of the report in the stipulated time.

We are grateful to our college “Faculty of Management Studies, Maharaja

Sayajirao University Baroda” for providing us with such an incredible
opportunity due to which We could increase our understanding of
technical things and widen our field of knowledge regarding “Strategic
Management” through this project report on “Oil & Gas Limited”.

We express our deep gratitude towards our dean I/C Dr. Sunita Sharma
for providing us with such an incredible opportunity. We express our deep
gratitude towards our project guide Mr. Pinkesh Parmar for taking a keen
interest in our project, helping us overcome many hurdles, and completing
the report. His guidance has helped us overcome many trials, complete
this report on time, and widen our horizon.
 TABLE OF CONTENT

SR.NO PARTICULAR PAGE.NO

1 Introduction 4

2 Challenges and Environmental Concerns 6

3 What are the different oil and gas sectors? 7

4 Companies Dealing in Oil and Natural Gas 10

5 MIS Introduction 14

6 MIS in the Oil and Gas Industry 16

7 Operational Phases in Offshore Oil & Gas Project 18

8 Project Procurement Process 22

9 Transportation 24

10 Examples From The Industry 29

Oil And Natural Gas Introduction
Oil and natural gas stand as two of the most crucial natural resources, serving as the lifeblood
of modern economies, industries, and daily living for billions of people worldwide. The story
of these hydrocarbons is one of profound significance, influencing technological innovations,
shaping geopolitical landscapes, and underpinning global energy dynamics. This
comprehensive introduction delves into the origins, multifaceted significance, pervasive
utilization, formidable challenges, and promising future prospects of oil and natural gas.

Origins and Formation

Oil and natural gas trace their origins to the depths of geological time, emerging from the
remnants of ancient organic matter. Over millions of years, the remains of prehistoric plants
and marine organisms underwent transformation beneath layers of sediment, subjected to
immense heat and pressure. This geological alchemy led to the formation of hydrocarbons,
primarily occurring in sedimentary basins where conducive conditions fostered organic matter
preservation and hydrocarbon generation.

Significance and Utilization

The significance of oil and natural gas reverberates across every facet of contemporary society.
Crude oil, in its myriad forms, serves as the backbone of transportation systems, propelling
cars, ships, airplanes, and other vehicles. Moreover, it constitutes a vital feedstock for the
production of plastics, pharmaceuticals, fertilizers, and an array of industrial products. Natural
gas, renowned for its versatility and relatively cleaner combustion profile, fuels electricity
generation, heating systems, industrial processes, and serves as a feedstock for petrochemical
industries.

Global Consumption and Production

Global consumption of oil and natural gas has surged exponentially over the past century,
driven by burgeoning populations, rapid industrialization, and urban expansion. Nations
worldwide rely extensively on these resources to power their economies, sustain modern
lifestyles, and drive technological progress. Leading consumers of oil and natural gas include
the United States, China, the European Union, India, and Russia.

In terms of production, several nations emerge as key players in the oil and gas arena. The
Organization of the Petroleum Exporting Countries (OPEC), comprising dominant oil-
producing nations such as Saudi Arabia, Iraq, and Iran, wields significant influence over global
oil markets. Meanwhile, Russia, the United States, and Canada rank among the foremost
producers of natural gas.

Challenges and Environmental Concerns

The pervasive use of oil and natural gas presents an array of formidable challenges and
environmental concerns. Extraction, processing, and combustion activities associated with
fossil fuels contribute to air and water pollution, habitat degradation, and climate change. The
combustion of oil and gas releases carbon dioxide (CO2) and other greenhouse gases,
intensifying the specter of global climate disruption.

Moreover, extraction techniques like hydraulic fracturing (fracking) pose threats to

groundwater resources and ecological integrity, while oil spills from drilling accidents and
transportation mishaps engender ecological catastrophes with far-reaching consequences.
Geopolitically, the quest for control over oil-rich regions has precipitated conflicts and
humanitarian crises, underscoring the intricate nexus between energy security and
geopolitical stability.

Future Prospects and Transition to Renewable Energy

Amidst mounting environmental imperatives and evolving energy paradigms, the imperative
to transition towards renewable energy sources has gained unprecedented traction. The
plummeting costs of renewable technologies, coupled with escalating environmental
consciousness, have catalyzed investments in clean energy infrastructure and innovation.

While oil and natural gas will retain their salience in the global energy matrix for the
foreseeable future, concerted efforts to curtail carbon emissions and mitigate climate change
are precipitating a gradual transition towards cleaner alternatives. Governments,
corporations, and civil society stakeholders are embracing renewable energy solutions,
fostering energy efficiency measures, and championing sustainable practices to diminish
reliance on fossil fuels and forge a more equitable and resilient energy ecosystem.

In summation, the saga of oil and natural gas epitomizes a saga of unparalleled influence,
profound consequences, and inexorable change. As humanity navigates the complexities of a
rapidly evolving energy landscape, the imperative to chart a course towards sustainability,
resilience, and equitable prosperity looms larger than ever before. Through visionary
leadership, concerted action, and unwavering commitment, societies worldwide can
surmount the challenges posed by fossil fuel dependency and usher in a new era of energy
transformation and environmental stewardship.

Considered being the biggest sector in the world in terms of dollar value, the oil and gas sector
is a global powerhouse using hundreds of thousands of workers worldwide and generating
hundreds of billions of dollars globally each year. In regions which house the major NOCs,
these oil and gas companies are so vital they often contribute a significant amount towards
national GDP.

What are the different oil and gas sectors?

The energy sector has three key areas: Upstream, midstream and downstream.

What is upstream?

Upstream is E&P (exploration and exploration). This involves the search for underwater and
underground natural gas fields or crude oil fields and the drilling of exploration wells and
drilling into established wells to recover oil and gas

What is midstream?

Midstream entails the transportation, storage, and processing of oil and gas. Once resources
are recovered, it has to be transported to a refinery, which is often in a competely different
geographic region compared to the oil and gas reserves. Transportation can include anything
from tanker ships to pipelines and trucking fleets.

What is downstream?

Downstream refers to the filtering of the raw materials obtained during the upstream phase.
This means refining crude oil and purifying natural gas. The marketing and commercial
distribution of these products to consumers and end users in a number of forms including
natural gas, diesel oil, petrol, gasoline, lubricants, kerosene, jet fuel, asphalt, heating oil, LPG
(liquefied petroleum gas) as well as a number of other types of petrochemicals.

What are the largest volume products?

The largest volumes of products of the oil and gas industry are fuel oil and gasoline (petrol).
Petroleum is the primary material for a multitude of chemical products, including
pharmaceuticals, fertilisers, solvents and plastics. Petroleum is therefore integral to many
industries and is of critical importance to many nations as the foundation of their industries.

Oil and Gas Industry Outlook

The world's dependence on oil and gas is increasing as global economies and infrastructure
continue to rely heavily on petroleum-based products. Discussions of when world oil and gas
production will peak seem to be on the periphery, even amid a weakened global economy and
the shrinking availability of oil. The oil and gas industry continues to wield incredible influence
in international economics and politics - especially in consideration of employment levels in
the sector, with the U.S. oil and gas industry supporting at least 10 million jobs.

The recovery occurred for several reasons, but the chief among them is the success of the
production restraint agreement between OPEC and non-OPEC nations. In addition, developing
nations such as China, Brazil and Russia are increasing exploration and production efforts.
However, geopolitical considerations such as the ongoing troubles in Venezuela, Iran, and
Qatar's exit from OPEC will influence oil and gas supply.
The trend towards renewable and alternative energy is another threat to traditional oil and
gas companies. Coupled with the rise in pro-eco legislation and governmental pressure has
meant the industry is under more scrutiny than ever.

Generating electricity from solar power systems and offshore wind is becoming increasingly
cheaper and cost-effective. According to IRENA, over 80 percent of newly commissioned
renewable energy will be cheaper than new oil & natural gas sources.

More recently, there has been a resurgence of confidence in the industry as it enters its third
year of recovery. Growth is increasing at a remarkable rate, as increased upstream production
continues to have a positive knock-on effect for midstream businesses. The price of crude has
also stabilised - steadying at around $50 per barrel. In addition, 100,000 jobs are expected to
be created in 2019 and the number of active drilling rigs in the U.S. has increased to 780+
compared to 591 from a year ago.

The UK continental shelf also appears to be back, with the potential to unlock dozens of
undeveloped discoveries with drilling prospects on the horizon. Additionally, we can expect
an improved outlook for UK upstream production. The UK offshore sector is expected to
improve after historical lows in the past few years as there are 16 planned greenfield projects
with identified development plans and 29 announced greenfield projects forecast to start
production between 2019 and 2025.

It is estimated that 30 billion barrels are consumed globally each year, primarily by developed
nations. Oil also accounts for a significant percentage of energy consumption regionally from
32% for Europe and Asia, 40% for North America, 41% for Africa, 44% for South and 53% for
the Middle East.

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Middle East.

Companies Dealing in Oil and Natural Gas

The oil and natural gas industry is dominated by a diverse array of companies, each playing a
pivotal role in the exploration, production, refining, and distribution of hydrocarbon
resources. From global supermajors to independent operators, these companies shape the
global energy landscape, driving innovation, investment, and strategic decision-making. In this
introduction, we'll highlight some of the key players in the oil and gas sector, showcasing their
influence and significance in the industry.

ExxonMobil Corporation

ExxonMobil, headquartered in Irving, Texas, stands as one of the world's largest publicly
traded oil and gas companies. With operations spanning the globe, ExxonMobil engages in
upstream exploration and production, downstream refining, and petrochemical
manufacturing. The company's extensive portfolio of oil and gas assets, technological
prowess, and strategic partnerships solidify its position as a major player in the industry.

Royal Dutch Shell

Royal Dutch Shell, commonly known as Shell, is a multinational energy company

headquartered in The Hague, Netherlands. With a rich history dating back over a century, Shell
operates in over 70 countries, undertaking upstream exploration, liquefied natural gas (LNG)
production, downstream refining, and retail marketing activities. Shell's commitment to
innovation, sustainability, and responsible resource management underscores its role as a
leader in the global energy transition.

Chevron Corporation

Chevron, based in San Ramon, California, ranks among the world's largest integrated energy
companies, boasting a diverse portfolio of upstream, downstream, and midstream assets.
Through strategic acquisitions, exploration ventures, and operational excellence, Chevron
maintains a strong foothold in key hydrocarbon-producing regions, including the United
States, Australia, and West Africa.

BP petroleum

BP, headquartered in London, United Kingdom, is a global energy company with operations
spanning exploration, production, refining, and marketing of oil and gas products. Renowned
for its pioneering efforts in deepwater exploration and renewable energy investments, BP
remains at the forefront of technological innovation and sustainability initiatives within the
industry

TotalEnergies SE

TotalEnergies, formerly known as Total, is a French multinational energy company with a

presence in over 130 countries. As a leading player in the oil and gas sector, TotalEnergies
leverages its expertise in exploration, production, refining, and renewable energy to meet the
evolving energy needs of societies worldwide

ConocoPhillips

ConocoPhillips, headquartered in Houston, Texas, is a leading independent exploration and

production company with operations across North America, Europe, Asia, and the Middle
East. Focused on maximizing shareholder value and operational efficiency, ConocoPhillips
pursues a disciplined approach to resource development while prioritizing environmental
stewardship and community engagement.

Eni S.p.A.

Eni, based in Rome, Italy, is an integrated energy company engaged in the exploration,
production, refining, and marketing of oil and gas products. With a diversified portfolio of
assets spanning multiple continents, Eni remains committed to sustainable development,
innovation, and inclusive growth across its global operations.
Oil and Natural Gas Corporation Limited (ONGC)

ONGC, India's largest oil and gas exploration and production company, stands as a flagship
enterprise in the country's hydrocarbon sector. Headquartered in Dehradun, Uttarakhand,
ONGC operates a vast portfolio of domestic and international assets, encompassing upstream
exploration, development, and production activities. With a legacy spanning over six decades,
ONGC remains pivotal to India's energy landscape, contributing significantly to domestic oil
and gas production.

Oil India Limited (OIL)

Oil India Limited, based in Duliajan, Assam, ranks among India's premier exploration and
production companies, specializing in upstream activities across diverse geological terrains.
With operations spanning multiple states, including Assam, Rajasthan, and Mizoram, OIL plays
a crucial role in augmenting domestic hydrocarbon reserves and enhancing energy security.

Indian Oil Corporation Limited (IOCL)

Indian Oil Corporation, headquartered in New Delhi, is India's largest integrated oil refining
and marketing company, operating a vast network of refineries, pipelines, and marketing
terminals across the country. IOCL's diverse portfolio encompasses refining, marketing,
petrochemicals, and exploration and production, making it a key player in India's downstream
oil and gas sector.

Reliance Industries Limited (RIL)

Industries Limited, led by business magnate Mukesh Ambani, is India's largest private sector
conglomerate with interests spanning oil and gas exploration, refining, petrochemicals,
telecommunications, and retail. Through its subsidiary Reliance Industries, RIL operates the
world's largest oil refining complex at Jamnagar, Gujarat, and is a leading player in India's
petrochemical industry.

Gas Authority of India Limited (GAIL)

GAIL, headquartered in New Delhi, is India's primary gas transmission and marketing
company, overseeing the operation and maintenance of a vast network of natural gas
pipelines across the country. As a key player in India's gas sector, GAIL plays a pivotal role in
facilitating the transportation, distribution, and marketing of natural gas to diverse end-users.

Bharat Petroleum Corporation Limited (BPCL)

Bharat Petroleum Corporation Limited, headquartered in Mumbai, is one of India's leading

integrated oil and gas companies, engaged in refining, marketing, and distribution of
petroleum products. With a robust refining infrastructure and extensive marketing network,
BPCL caters to the diverse energy needs of consumers across the country.

Hindustan Petroleum Corporation Limited (HPCL)

Hindustan Petroleum Corporation Limited, based in Mumbai, is another prominent player in

India's downstream oil and gas sector, specializing in refining, marketing, and distribution of
petroleum products. With a focus on operational excellence and customer-centric services,
HPCL continues to strengthen its position as a leading provider of quality fuels and lubricants.
MIS Introduction

A management information system (MIS) is a system or process that provides the information
necessary to manage an organization effectively. MIS and the information it generates are
generally considered essential components of prudent and reasonable business decisions.

The importance of maintaining a consistent approach to the development, use, and review of
MIS systems within the institution must be an ongoing concern of Oil & Gas Industry. MIS
should have a clearly defined framework of guidelines, policies or practices, standards, and
procedures for the organization. These should be followed throughout the institution in the
development, maintenance, and use of all MIS. MIS is viewed and used at many levels by
management. It should be supportive of the institution's longer term strategic goals and
objectives. To the other extreme it is also those everyday financial accounting systems that
are used to ensure basic control is maintained over financial record keeping activities.

Financial accounting systems and subsystems are just one type of institutional MIS. Financial
accounting systems are an important functional element or part of the total MIS structure.
However, they are more narrowly focused on the internal balancing of an institution's books
to the general ledger and other financial accounting subsystems. For example, accrual
adjustments, reconciling and correcting entries used to reconcile the financial systems to the
general ledger are not always immediately entered into other MIS systems. Accordingly,
although MIS and accounting reconcilement totals for related listings and activities should be
similar, they may not necessarily balance.

An institution's MIS should be designed to achieve the following goals:

• Enhance communication among employees

• Deliver complex material throughout the institution
• Provide an objective system for recording and aggregating information
 • Reduce expenses related to labor-intensive manual activities
• Support the organization's strategic goals and direction

Because MIS supplies decision makers with facts, it supports and enhances the overall
decision making process. MIS also enhances job performance throughout an institution. At
the most senior levels, it provides the data and information to help the board and
management make strategic decisions. At other levels, MIS provides the means through which
the institution' activities are monitored and information is distributed to management,
employees, and customers.

Effective MIS should ensure the appropriate presentation formats and time frames required
by operations and senior management is met. MIS can be maintained and developed by either
manual or automated systems or a combination of both. It should always be sufficient to meet
aninstitution's unique business goals and objectives. The effective deliveries of an institution's
products and services are supported by the MIS. These systems should be accessible and
useable at all appropriate levels of the organization.

MIS is a critical component of the institution's overall risk management strategy. MIS supports
management's ability to perform such reviews. MIS should be used to recognize, monitor,
measure, limit, and manage risks.

Risk management involves four main elements:

• Policies or practices
• Operational processes
• Staff and management
• Feedback devices

Frequently, operational processes and feedback devices are intertwined and cannot easily
beviewed separately. The most efficient and useable MIS should be both operational and
informational. As such, management can use MIS to measure performance, manage
resources, and help an institution comply with regulatory requirements. MIS can also be used
by management to provide feedback on the effectiveness of risk controls. Controls are
developed to support the proper management of risk through the institution's policies or
practices, operational processes, and the assignment of duties and responsibilities to staff and
managers. Technology advances have increased both the availability and volume of
information management and the directors have available for both planning and decision
making. Correspondingly, technology also increases the potential for inaccurate reporting and
flawed decision making. Because data can be extracted from many financial and transaction
systems, appropriate control procedures must be set up to ensure that information is correct
and relevant.

In addition, since MIS often originates from multiple equipment platforms including
mainframes, minicomputers, and microcomputers, controls must ensure that systems on
smaller computers have processing controls that are as well defined and as effective as those
commonly found on the traditionally larger mainframe systems.

All institutions must set up a framework of sound fundamental principles that identify risk,
establish controls, and provide for effective MIS review and monitoring systems throughout
the organization. Commonly, an organization may choose to establish and express these sound
in writing. The management fully endorses and supports placing these principles in writing to
enhance effective communications throughout the institution. Sound fundamental principles
for MIS review include proper internal controls, operating procedures and safeguards, and
audit coverage. Companies within the downstream petroleum industry want to grow revenue
and market share while reducing costs. They face thin margins that limit capital spending for
growth initiatives. Efforts to drive down costs through line-item cutting have been effective,
but many companies are finding that there are fewer and fewer options remaining. Still,
merger and acquisition activities remain common, and most companies want to standardize
their processes and operate globally. These goals and challenges are no different from those
in most other industries. What is different, from a supply chain perspective, is the downstream
petroleum industry’s reliance on a volatile raw material, crude, coupled with a production and
distribution environment that cannot respond immediately to changing demand for product.
Typically, companies that have recently undergone merger and acquisition activity choose to
operate duplicate, suboptimal supply chains that are not demand-based. Often, companies
have inaccurate information about how these supply chains operate.
MIS in the Oil and Gas Industry

In the oil and gas industry, Management Information Systems (MIS) can be classified into two main
categories: Management Information and Management Systems. Let's break down these
classifications:

Management Information

Management Information (MI) refers to the data, reports, and analysis that are specifically
designed to support managerial decision-making within an organization. In the context of the
oil and gas industry, management information encompasses various types of data and reports
related to operations, exploration, production, finance, human resources, safety, and
environmental compliance.

Here are some key aspects of Management Information in the oil and gas sector:

Operational Data

Operational data includes information related to day-to-day activities such as production

volumes, equipment performance, maintenance schedules, and workforce allocation. This
data helps managers monitor operations, identify inefficiencies, and make informed decisions
to improve productivity and optimize resources.

Exploration and Reservoir Data

For oil and gas companies engaged in exploration and production activities, management
information includes data related to geological surveys, seismic studies, well logs, reservoir
characteristics, and production forecasts. This information is crucial for assessing the potential
of oil and gas reserves, planning drilling activities, and optimizing reservoir management
strategies.

Financial Information

Management Information also encompasses financial data such as revenue, expenses, capital
expenditures, profit margins, cash flow statements, and budget forecasts. Financial reports
and analysis enable managers to track the financial performance of projects, assess
investment opportunities, manage costs, and allocate resources effectively.
Supply Chain and Logistics Data

In the oil and gas industry, supply chain and logistics management play a critical role in
ensuring the timely delivery of materials, equipment, and services to support operations.
Management Information includes data related to inventory levels, procurement activities,
transportation logistics, supplier performance, and supply chain costs. This information helps
managers optimize supply chain processes, minimize inventory holding costs, and mitigate
supply chain risks

Safety and Environmental Data

Safety and environmental compliance are paramount in the oil and gas industry due to the
inherent risks associated with exploration, production, and transportation activities.
Management Information includes data on safety incidents, environmental compliance
audits, regulatory requirements, and risk assessments. This information enables managers to
implement effective safety protocols, monitor environmental performance, and ensure
compliance with regulatory standards.

Market and Competitive Intelligence

Management Information also encompasses market research, competitive analysis, and

industry trends that provide insights into market dynamics, customer preferences, competitor
strategies, and emerging opportunities. This information helps managers anticipate market
changes, identify growth opportunities, and formulate competitive strategies to maintain a
competitive edge in the marketplace.

In summary, Management Information in the oil and gas industry comprises a wide range of
data, reports, and analysis that support managerial decision-making across various functional
areas. By leveraging accurate and timely management information, oil and gas companies can
enhance operational efficiency, optimize resource allocation, mitigate risks, and achieve
strategic objectives in a dynamic and competitive environment.

Management Systems in the oil and gas industry refer to the integrated technology platforms,
software applications, and organizational processes that facilitate the collection, processing,
storage, analysis, and dissemination of data and information to support decision-making and
operational management within an organization. These systems are designed to streamline
business processes, improve efficiency, enhance collaboration, and enable informed decision-
making across various functional areas.

Management System

Here are some key aspects of Management Systems in the oil and gas industry

Enterprise Resource Planning (ERP) Systems:

ERP systems are comprehensive, integrated software platforms that centralize and automate
core business functions such as accounting, finance, procurement, inventory management,
human resources, and project management. In the oil and gas industry, ERP systems help
organizations streamline operations, standardize processes, improve data accuracy, and
provide real-time visibility into key performance indicators (KPIs) across the enterprise.

Production Reporting Systems:

Production reporting systems capture and analyze real-time data from wells, platforms,
pipelines, and facilities to monitor production volumes, performance metrics, downtime
events, and equipment utilization. These systems provide operators and managers with
actionable insights to optimize production processes, identify inefficiencies, and minimize
downtime to maximize asset performance and profitability.

Asset Management Systems:

Asset management systems enable organizations to track, monitor, and manage physical
assets such as wells, pipelines, refineries, storage tanks, and equipment throughout their
lifecycle. These systems facilitate asset maintenance, inspection, repair, and replacement
activities, helping organizations optimize asset utilization, extend asset lifespan, and minimize
operational risks and costs.

Geographic Information Systems (GIS):

GIS platforms combine spatial data (e.g., maps, satellite imagery, geospatial datasets) with
attribute data (e.g., well locations, pipeline routes, land ownership) to visualize, analyze, and
manage geospatial information related to oil and gas exploration, production, transportation,
and environmental monitoring. GIS systems help organizations make informed decisions
regarding site selection, route planning, land acquisition, environmental impact assessment,
and regulatory compliance.

Safety and Compliance Management Systems:

Safety and compliance management systems enable organizations to establish and enforce
safety protocols, track safety incidents, conduct risk assessments, manage regulatory
compliance, and promote a culture of safety across the organization. These systems help
mitigate safety risks, prevent accidents, ensure regulatory compliance, and protect the health
and well-being of employees, contractors, and the environment.

Business Intelligence (BI) and Analytics Systems:

BI and analytics systems provide organizations with tools and capabilities to analyze large
volumes of data, generate actionable insights, and make data-driven decisions. These systems
leverage advanced analytics techniques such as data visualization, predictive modeling,
machine learning, and artificial intelligence to identify trends, patterns, and correlations in
data related to operations, production, finance, supply chain, and market dynamics.

In summary, Management Systems in the oil and gas industry encompass a diverse range of
technology platforms, software applications, and organizational processes that enable
organizations to streamline operations, improve efficiency, enhance collaboration, and make
informed decisions to achieve their strategic objectives in a dynamic and competitive
environment.
Operational Phases in Offshore Oil & Gas Project
● There are broadly four phases to the installation of a steel jacket - loadout, sea
fastening, offshore transportation and installation offshore.

● In deciding how best to fabricate and install a given jacket, the options are principally
determined by the installation equipment available and the jacket's intended water
depth.

● An installation plan must be prepared for each installation. Loadout entails the
movement of the completed structure onto the barge which will transport it offshore.

● Sea fastening entails fitting and welding sufficient ties between the jacket and the
barge to prevent shifting while in transit to the offshore site.

● The transportation of heavy components from a fabrication yard to the offshore site is
a critical activity requiring careful calculation and planning.

● Removal of the jacket from the barge is accomplished either by direct lifting with a
derrick barge and lowering into position, or by launching. A number of engineering
studies are required for jacket launch and set-down.

1. Conceptual Study

2. Pre-Engineering Survey

3. Engineering

4. Procurement

5. Fabrication

6. Load-out

7. Transportation

8. Installation

9. Pre-commissioning
 10. Commissioning

Pre-engineering Survey
● After the award of the contract the first activity to be conducted is pre-engineering
survey.

● Relevant data pertaining to the soil conditions offshore, platform piping, riser
location, pipeline route selection etc. is collected.

● This data forms the basis of detailed engineering.

Detailed Engineering
● Detailed Engineering receives relevant input from Pre-engineering survey reports /
Bid package and subsequently drawings are generated which form the basis for
fabrication activities undertaken at Fabrication yard.

.Procurement
5.4 Fabrication

● AFC-Approved for Construction to IFC Drawings generated during detailed

engineering are used for the fabrication of various items such as Jackets, decks,
piping spools, clamps etc.

● Rigid Pipeline Coating is subcontracted to a qualified contractor having a water

front. Bare pipes are sent to subcontractor for Anti-corrosion and Weight Coating.
They are then directly sent to Offshore for Installation.
● Fabrication is undertaken at L&T Hazira, Kattupalli and Sohar.

5.5 Load-out

Load-out is the process of transportation or moving a structure or module from the

fabrication location in the yard to the designated location on a barge or vessel.

Load-out is performed using any of the following three methods:

5.5.1 Trailer assisted (SPMT) Self-Propelled Modular Transporter: A set of hydraulic trailers
or dollies is used to lift and transport the structure from the yard to the barge. This involves
use of a multi-axle trailers which have a flatbed which is hydraulically assisted for jacking up
or down. These are self-driven using captive hydraulic power packs housed in them.

5.5.2 Skidded: This involves moving the structure on skid beams using push-pull jacks or
winches.

Fig: Skidded Load-out

5.6 Transportation

The transportation of heavy structures from the fabrication yard jetty to the offshore site is
usually performed utilizing a cargo barge and a tow tug. The transportation can involve long
distances up to 2000 kilo-meter or even more. For transportation, the structure has to be
adequately sea fastened. The towing tug needs to have sufficient BHP to tow the cargo barge
in expected worse weather condition.

Fig: Transportation of structure

5.7 Installation

Installation of jacket can be done by two methods:

5.7.1 Lift Method
In this method, the jacket is vertically lifted off the barge and placed at the intended location
on the sea bed. In another lift method, the jacket is first horizontally lifted off the barge and
placed in sea in floating condition. Subsequently, with controlled ballasting the jacket is up-
ended using the slings at top and placed at the intended location.

5.7.2 Launch Method

This involves skidding the jacket structure on skid beams on the launch barge (special cargo
barge) using push-pull jacks. The jacket slides off the barge into the sea. Subsequently, the
jacket is towed to location, flooded and up-ended using Derrick crane.
5.8 Pre-commissioning

This will commence after construction is complete. Pre-commissioning means checking,

verification, testing, adjustment, calibration, etc. of item assemblies, loops or part of
systems.

5.9 Commissioning
It means the testing and adjustment of an assembly, or system, and will comprise of
Operational Testing under real or simulated (hydrocarbon) conditions and is ready for start-
up.
 How MIS is used in Oil & Gas Industry?

THE BUSINESS PROCESS OF DOWNSTREAM MARKETING AND RETAILING

MIS for Oil & Gas solutions provide comprehensive support for key marketing and retailing
activities, including:

Marketing planning and execution – You can design, execute, coordinate, and monitor all
marketing initiatives. You can create personalized and segment-specific campaigns and
monitor enterprise wide profitability at the program, product, customer, and partner levels.

Sales planning and account management – MIS enable you to streamline your sales
planning and promote your most profitable products to your most profitable customers. You
can also segment customers and target segments with welldifferentiated products and
services.

Opportunity-to-cash management – MIS provide complete visibility into opportunities –

enabling you to convert them into contracts or customer orders. You can take orders, create
proposals, determine pricing, check product availability and customer credit, and manage
and track contracts across all interaction channels.

Customer service – You can deliver superior service through multichannel interaction
centers, including Web-based customer self-services. You can also ensure optimum
customer service levels with powerful tools to analyze service performance.

Terminal management – MIS enable you to monitor goods movements and compare stock
levels in terminal tank farms. By implementing terminal automation systems, you can
optimize internal processes for taking orders and managing tank stocks and shipments.

Hydrocarbon products transportation – You can plan and execute bulk and packaged-
products shipments. You can calculate freight costs for bulk and non-bulk shipments with
evaluated receipt settlement for invoice processing with carriers. You can also use end-of-
day data collation to consolidate actual delivery quantities with scheduled quantities.
Service station fuel management –MIS you to derive fuel sales quantities from point-of-sale
(POS) data or calculate them from meter readings that are reconciled with physical dip
readings. You can analyze and adjust fuel pricing throughout retail networks to remain
competitive.

Convenience retailing – You can manage pricing and promotions, merchandising activities,
and accounting at stores and headquarters. You can use POS data to analyze customer
loyalty, and store employees can access the system at headquarters to optimize store
operations.

Helping the Oil Company by Information System In Outsourcing

Many oil companies are returning to their roots or core competencies—focusing on finding
oil and gas. In taking that route, many other tangential aspects of their operations that do
not add appreciable value to the organization are being wholly or partially outsourced.

At the same time, a demographic tide of change is occurring in the industry’s workforce. In
recent years, knowledge transfer has become a significant issue for a pragmatic reason. A
large chunk of experienced people is disappearing through senior worker attrition, igniting a
frantic need for development of freshmen and sophomore successors.

Although that has created an industry hurting for experienced people, service companies
have stepped in with innovative solutions, most specifically new technology, to help oil
companies over the human resource hump. Fortunately, hiring of petroleum engineers,
geologists, and related professionals is again on the cyclical uptick, but it always takes a while
before new hires are successfully integrated into the workforce from the standpoint of being
genuinely productive.

In other words, service companies are helping oil companies of all sizes—from small
independents to large, fully integrated organizations—to bridge the gap in the experienced
personnel shortfall by developing and providing creative technology that increases
operational efficiencies. This includes not only electronically gathering data about the drilling
process, but also integrating all that information with mission-critical business applications
as well. Another example involves development activities to optimize performance drilling
applications by taking that drilling information (e.g., weight on bit, revolutions per minute,
torque, and other measurements recorded on a daily basis) and feeding it through algorithms
to compute mechanical specific energy (MSE) to help drillers, contractors, and operators drill
more efficiently.

And the process can work various ways. Depending on a service company’s size and its
breadth of competencies, the service company may generate new ideas and techniques, then
bring them to operators and drilling contractors. Or, new techniques and methodologies may
be jointly developed between service companies and oil companies. For example, on some
current projects, oil companies are collaborating on MSE applications with a service company
to understand how to apply the measurements to their daily drilling activity. On a single-well
basis, savings and efficiencies may seem somewhat minimal at first glance, possibly up to
USD 15,000 total, but, aggregated across a field in a domestic drilling program, it delivers a
significant impact on an operator’s business.

Productivity from Many Directions

New technology’s value, of course, is not about its bells-and-whistle looks, but about what it
actually brings to the table. It is extraordinary how far oil companies have stepped into the
future, just from the perspective of the instrumentation side of the business. Productivity can
be a value-add from several different directions: in terms of the drilling aspect with
performance drilling solutions, business integration solutions, asset management solutions,
or through communications solutions. Notably, some efficiencies on the drilling
instrumentation side are being adapted to the work over and production side of the business.

One of the primary ways to solve the dilemma of a lack of trained people in the industry is
by helping companies essentially help themselves by automating as much of the daily
operations as possible. That includes new technology that assists directional drillers by
sending information to their down-hole tool automatically or even remotely. Similarly, there
is ongoing development with MSE to enhance the value of remote monitoring capabilities.

While it might be concluded that these efforts are designed to reduce a company’s workforce,
the emphasis remains one of building greater efficiencies rather than lowering head count—
and “remote” is a key. More and more companies are monitoring operations, changing
configurations, and troubleshooting—all remotely. Rigs monitored remotely feed
information into a service centre manned 24/7. Technicians’ well-monitoring duties include
making sure that sensors are functioning properly, that software is current, and that the
appropriate command is electronically sent if it needs updating.

All these developments are delivering the clear message that the days of adding unlimited
personnel to a company’s work-force are gone. Certainly, viewed in a generalist way, E&P rigs
and operations look the same as they did years ago. Yet, in many ways not visible to a typical
observer, the industry is changing in quantum leaps, and companies must be prepared to
change with the times. In an industry contradictorily brimming with new technology yet
highly conservative and somewhat reluctant to change, stepping into the next dimension is
not always the obvious next move. However, companies must adapt to today’s economic
environment by becoming more efficient and productive or absorb the adverse effects.

That means looking past a healthy oil and gas economy today to be positioned for times that
may not be as bright—investing now to have those efficiencies and gains in place when the
inevitable downturn occurs. This applies not only to large, integrated companies, but
especially to small independents that may not think such an investment is feasible since they
do not have comparable resources. However, as noted earlier, when service companies can
bring smaller oil companies significant performance improvements, investment for the
future should not be dismissed out of hand.

Therefore, it is important to build and maintain a continued focus on a partnership and active
collaboration between operators and service companies to push technology toward gaining
even more efficiencies and reducing costs. That may be better or improved integration of
wellsite operations with the back-office functionality, streamlining those activities on site and
together allowing the driller and tool pusher to concentrate more on drilling hole than on
being ad hoc administrators. That allows operators to get back to their core business of
finding oil and gas, and being less concerned with administrative issues surrounding that
process, by automating that, too.

There are few bigger challenges than finding and producing oil and gas. That is precisely why,
even when traditional methods work fine, better ones are always right around the corner.
And they are usually born of cutting-edge technology that accomplishes the old-fashioned
objectives of efficiency, productivity, and profitably better than yesterday’s methods ever
will. Technology is one of better management’s best friends.

Managing the Business of Drilling

As the oil industry enters a new economic environment with increased introduction of new
technology, the message to operators stays on course: making them more efficient and
better at managing both risk and E&P operations. Pivotal to this approach are solutions
designed to provide more accurate, timely information from the wellsite to the corporate
office and critical business applications. In other words, the issue remains how senior
executives can best manage or streamline business operations, manage their drilling budget
as a business investment, and improve their return on investment. These points or
challenges call for solutions directed not only at the head office but at drilling crews, rig
managers, and operations managers, along with key management.

What to look for in a website information system:

On-demand Web access to all drilling data, including reports for remote/corporate office
access. Dedicated email accounts for easy communications between sites and home office
Standardized communications across all rig operations

What to look for in a business-integration system:

Corporate office drilling process data collection and mining capability Integrated
function to automatically feed critical business applications
 EXAMPLES FROM THE INDUSTRY

ENGEN PETROLEUM

Situation

Engen Petroleum (Engen) is a leading African oil company headquartered in Cape Town,
South Africa. The company employs approximately 4,800 people in 12 production sites and
100 depots throughout Africa. A subsidiary of Petronas of Malaysia, the company has the
largest market share (27 percent) of the South African petroleum industry and operates
1,258 service stations. The company generates annual revenues in excess of U.S. $2.9 billion
and has a net asset value of U.S. $700 million. It owns and operates its own refinery that
produces more than 130,000 barrels of oil per day.

Due to its large number of offices and the high mobility of its workforce across the
continent, messaging is a critical function for the company. Engen previously used multiple
messaging platforms that included four different systems and four different sets of tools to
access them. The company used Microsoft® Exchange Server 2003 for e-mail, Right Fax for
sending and receiving faxes, Iron Mail for spam and antivirus mail filtering, and Call Xpress
for voice messaging. This combination proved unwieldy and complex to administer, so the
company decided to consolidate its communication infrastructure for voice mail, e-mail,
and fax. “Engen had to license multiple servers to run the applications and had multiple
maintenance contracts with the vendors. There were also integration problems between
the systems—for example, when the company upgraded its voice-mail desktop messaging
application, the e-mail messaging system blocked voice-mail messages from being delivered
to the desktop,” explains Christophe Hollander, Microsoft Consultant, and Dimension Data.
Multiple systems also required administration by IT staff specialized in each application.
During deployment or as part of the normal refresh cycle of the company, technical staff
needed to install each application onto individual desktops, which was a large drain of time
and resources. Furthermore, ensuring migration of the applications from one computer to
another without losing data proved difficult.

Another drawback of this multiple-platform system was that mobile employees had limited
access to messages and communication. For example, when employees were working
remotely, they could not access voice mail, view calendar information, or make use of
telephone directory services—thus hindering their productivity. In addition, faxes could be
viewed only when employees had access to a fax machine. Because of the financial
transactions between Engen and its vendors and dealers, security was important. The
company also needed a robust, safe messaging solution with built-in antivirus and antispam
programs to protect its users, its system, and its intellectual property. “We wanted a secure,
single point of contact that would enable our employees to click on one application for all
their messaging requirements,” says Trudy Kumalo, Team Lead, Microsoft Competency
Centre, Engen Petroleum. “Our key requirement for upgrading to a new messaging platform
was its ability to provide a safe collaborative environment, with integration between the
different messaging tools. We also wanted to make sure employees could find out exactly
where the person was whom they were trying to contact and whether that person was
available or not.”

Solution

To meet its collaborative messaging needs, Engen chose to work with Microsoft Gold
Certified Partner Dimension Data. Ultimately, Engen decided to migrate from Microsoft
Exchange Server 2003 to Exchange Server 2007. “Our company has consistently used
Microsoft products for many years and we’ve been very happy with them,” says Kumalo. “It
was a logical move.” The initial phase, begun in April 2007 and completed within the month,
included 102 employees using Exchange Server 2007, with 54 employees enabled for unified
messaging. With Exchange Server 2007 Unified Messaging, users can receive e-mail
messages, voice mail, and faxes in their inbox, which they access using the Microsoft Office
Outlook® 2007 messaging and collaboration client. Plans are in place to increase these
numbers after October 2007 to 1,800 email–messaging users and 100 unified-messaging
users, respectively. Dimension Data was responsible for supplying technical skills to upgrade
to the new messaging technology, ensuring system integration, and training IT staff to
administer and maintain the platform. The Exchange Server Unified Messaging solution
allows employees to listen to, forward, and reply to e-mail messages, and to make, update,
or respond to meeting requests over the telephone. Users can also flag messages for follow-
up, skip to the next unread message, hide or delete conversations, and even find messages
from particular users. All these functions use either voice navigation or a standard touchtone
keypad (DTMF). “In addition, employees no longer have to be at their desks to access the
telephone directory, e-mail messages, or their calendar,” says Kumalo. Previous
communication systems at Engen delivered messages into several different types of storage
systems, including voice-mail systems, e-mail message servers, and stand alone fax
machines.

Now, with Exchange Server Unified Messaging, all types of messages are stored in one
highly accessible system. Even voice-mail messages are delivered directly into the user’s
inbox, offering powerful new ways to collaborate more effectively. The solution also enables
mobile employees to access their messages through Microsoft Office Outlook Web Access
using a Web browser, and Office Outlook 2003 or 2007, outside the firewall. Users have
flexible access through a variety of mobile devices, including the option to use a standard
phone line using Microsoft Office Outlook Voice Access with speech recognition. “Now with
integration between the communications client and the Private Automated Branch
Exchange (PABX), employees know who is calling them, and any missed calls go straight into
their Outlook inbox,” says Kumalo. Previously, IT staff had to be trained on different voice,
fax, and e-mail messaging systems. They had to monitor and troubleshoot in multiple
places, provision accounts for each employee in multiple directory infrastructures, and
manage the security and maintenance of all of these essential systems on an ongoing basis.
With Exchange Server Unified Messaging, the IT department has significantly fewer
demands—for both installation and maintenance. In addition, the Exchange Server 2007
environment includes built-in antivirus and antispam protection. Engen is also piloting
unified messaging with 100 users running Microsoft Office Live Communications Server
2005 Enterprise Edition. Live Communications Server will deliver both instant messaging
(IM) and user presence features as part of a total, scalable solution, giving the company
enhanced security, integration with other Microsoft products, and an extensible
development platform for all 4,800 employees.

Benefits

Using Exchange Server 2007 Unified Messaging, Engen employees can be productive from
almost anywhere at any time, using a broad range of devices—including a simple
telephone. Unified messaging has simplified and streamlined communications for the
company and greatly reduced the complexity of managing its messaging needs.

Improved Collaboration

With the introduction of unified messaging, Engen employees can access messages and
calendar data respond to meeting requests, flag messages, and respond to requests—no
matter where they are or what device they are using. Engen has realized significant
performance improvements, increased security, and improved employee productivity. The
solution has also resulted in improved collaboration and integration that supports the
needs of mobile employees.

“By using the flexible access that unified messaging allows, our employees can now connect
with each other from any location at any time. On the road they can use their mobile
phones, and in the office it’s even easier to get hold of someone using presence
information,” says Kumalo.

Streamlined Manageability

Unified messaging has reduced the time that IT staff needs to perform administrative tasks,
and improved the efficiency of the IT administrators. “The ease of use of the administrator
interface is especially helpful to us. We now have one system instead of three to
administer,” says Kumalo. Instead of administering three disparate and totally isolated
systems, IT staff can manage all messaging requirements through a single, easy-to-use, and
consistent interface. “This means our administrators can consult and see everything that
they need to from a single screen,” explains Kumalo. “The amount of training required is
also less than with three separate systems, and our backups and any forthcoming upgrades
will be much easier to manage too.”

Optimized Performance

“The company has witnessed a significant performance improvement. Access to e-mail

from Outlook is faster, with a better response time from the server,” says Dylan Owen,
Microsoft Systems Engineer at Engen. Engen no longer requires performance-sapping
Virtual Private
Network (VPN) access into the company network for employees who need access from
remote locations. All employees can now use Office Outlook Web Access to view and work
on files located on internal servers with a corresponding increase in speed and
convenience. Additionally, the option to use faster 64-bit hardware means more-effective
use of capacity than with the original systems. “There can be more users per individual
server without affecting performance now,” adds Owen Moreover, the upgrade to Exchange
Server 2007 was seamless; employees were not subject to any change or disruption, and
could continue using the familiar Microsoft interface and menu structures—a significant
improvement over the previous setup.

Tightened Security “We are definitely more confident of our communications security,” says
Kumalo. “Exchange Server uses encryption technology to help keep messages confidential
inside the organization and over the Internet, and actively protects our users.” The
Exchange Server environment also offers integral protection for the company’s valuable
intellectual and financial property, with built in security technologies, including antivirus
and antispam software and services for email and instant messaging, to protect against the
latest security threats. This is vital for Engen, as security is a major consideration in the
highly competitive energy industry. The frequent and automatic updates to junk e-mail
filters and antivirus signatures ensure up-to-date protection for all Engen employees, no
matter what their location or hardware platform.

Enhanced Productivity
The company’s mobile employees can now stay connected through quick access to all of
their communications—including voice mail, e-mail, and faxes—from Outlook 2007,
Outlook Web Access, and mobile devices. “Our employees don’t have to be at their desks to
get integrated access to all their various communication tools,” comments Kumalo. This
means that no matter where employees are—on a rig, at the refinery, at their desk—the
work of keeping the gas running can go on without the need to run for a phone, computer,
or fax machine when they need to access a particular type of message. “Now our
employees can be productive even when they are on the road. They can access everything
they need without waiting. The introduction of unified messaging is making a big difference
to the way we work,” adds Kumalo.

ONGC

If we take the India’s Oil and Gas Company we will find that they are also facing a lot of
problem and they are also using the MIS to deal with this situation. Here we are taking the
example of ONGC.

Business Needs

Oil and Natural Gas Corporation (ONGC), an India-based public sector petroleum company
with 31,000 employees, is responsible for 77 percent of India's crude oil production and 81
percent of India's natural gas production. ONGC exploits hydrocarbons in 26 sedimentary
basins of India, and owns and operates more than 11,000 kilometers of pipelines.

ONGC has a complex, heterogeneous IT infrastructure composed of desktop computers

running a mix of Windows operating system editions, Microsoft Office programs, and various
line-of-business applications. ONGC wanted to standardize its operating system image in
order to simplify IT management and improve IT security. In addition, the company wanted
to replace its desktop computers with new portable computers to help improve productivity
and employee satisfaction.

Solution
In June 2007, ONGC began exploring the idea of deploying Windows Vista Business across
the organization. With productivity and security paramount, the company exhaustively
tested Windows Vista in its IT environment. It evaluated several security features, including
the Microsoft Phishing Filter in Windows Internet Explorer 7.0, Windows Defender, and
secure wireless configuration; productivity features, including Instant Search, Windows
Sidebar, and simplified networking; and compatibility of its mission-critical business
applications before initiating Windows Vista deployment in December 2007.

In over four months’ time, and with the help of Microsoft Services, ONGC issued 18,000 new
portable computers from Toshiba, Lenovo, and Hewlett-Packard to employees across all
operations of the organization. Each portable computer included Windows Vista, the 2007
Microsoft Office suites, and the Windows Internet Explorer 7 Internet browser. By June 2008,
the company expects to deploy another 2,500 portable computers, for a total of 20,500 new
portable computers running Windows Vista. As part of the deployment process, the
company also offered training to its employees to help accelerate acceptance, smooth the
changemanagement process, and improve overall productivity.

Benefits
As a result of the new deployment, ONGC has already realized several benefits that are
critical to the company’s continued success, including enhanced security, easier IT
management, and increased employee productivity.

Enhanced security. “Because we are a public sector organization and bound by regulatory
compliance, theft of confidential oil exploration data is one of our top concerns," explains
M. Thyagaraj, Chief Information Officer at ONGC. The company is taking advantage of
several security enhancements, including Windows Defender, to help it safeguard sensitive
information. In addition, the company plans to deploy Windows Bit Locker Drive
Encryption—helping to ensure that even if an employee’s computer is lost or stolen, user
and system data is still safeguarded against unauthorized access.

Easier IT management. ONGC now has a single, hardware-independent operating system

image. By standardizing its operating system, the IT staff at ONGC can accelerate
deployment and will be better equipped to easily manage IT assets. “With Windows Vista,
we are able to effectively take inventory of our laptops—capturing hard disk drive, RAM,
battery, and other details—and can easily carry out proper maintenance,” says Thyagaraj. In
addition, the company can now take advantage of Zero Touch Deployment capabilities in
Windows Vista.

Increased employee productivity. As a result of implementing Windows Vista and the 2007
Microsoft Office suites, ONGC anticipates an uptick in employee productivity. “We expect to
see an immediate 5 to 10 percent increase in productivity,” explains Thyagaraj.

SURGUTNEFTE GAS

Situation

Surgutnefte gas is one of Russia's largest oil companies. The company conducts exploration
work, as well as constructing and developing oil and gas fields. It also extracts and refines oil
and gas, and produces oil and petrochemical products. The organization employs 85,000
people and operates 80 branches. Its sales represent 13 percent of the Russian oil market.
The company historically supported its operations with a complex IT infrastructure. This was
distributed over a wide geographical area and served more than 10,000 users at 100 sites.
As new branches were added, the number of server domains in use at Surgutnefte gas grew
to 100. The company needed 114 separate Microsoft Exchange Server version 5.5
applications to manage the company’s email messaging requirements. Administrators could
no longer manage this infrastructure effectively. It was also impossible to implement
common IT policies across the entire organization. Unplanned downtime was also causing
disruptions to normal business operations and reducing end-user productivity. Because the
server environment was distributed over a wide geographical area, costly on-site
maintenance was also required. To address these issues, the company wanted to deploy a
new, centralized IT infrastructure and update the e-mail messaging system, on which many
of the company's managerial and technical processes depend. Another key goal was to
integrate existing SAP enterprise management systems with the new infrastructure.

Solution

The Surgutnefte gas IT department began discussions with Microsoft Services to scope the
requirements for the new IT infrastructure. In August 2003, the infrastructure refresh began
in a limited segment of the Surgutnefte gas network. The first phase was to deploy the
Microsoft Windows Server TM 2003, Enterprise Edition, operating system. This incorporates
Active Directory service, a comprehensive, centralized catalogue that can be used to view,
manage, and amend each element of the distributed IT network. Active Directory operates
independently of existing applications and hardware servers, and thereby maximizes the
value of previous technology investments. Microsoft Services also helped Surgutnefte gas to
migrate its existing Exchange Server version 5.5 messaging system to Microsoft Exchange
Server 2003. This now supports a consolidated, centrally managed server cluster that
handles messaging requirements reliably and effectively across the enterprise.

As a key part of the project, Microsoft Services worked with Surgutnefte gas to integrate
human resources (HR) software from SAP into the new infrastructure where the software
can be centrally managed by Active Directory. At the same time, Microsoft Identity
Integration Server 2003 (MIIS 2003) automates the process of creating and maintaining
personnel records and offers a companywide address book. Central management features
of Windows Server 2003 also provide rapid, reliable access to a range of business
applications. End users can rapidly and securely open all the technology tools they need by
using a single sign on process. The new system is constantly monitored with Microsoft
Operations Manager (MOM) 2000 to ensure the highest levels of network security and
performance. Fedor Zubanov, Senior Consultant with Microsoft Services, says, “Initially, the
new infrastructure served 3,000 users within a specific section of the network. Now, we are
expanding it on a companywide basis and increasing integration between old and new
infrastructure elements. We are also working with IT professionals at Surgutnefte gas to
ensure they can continue rolling out the new software to regional sites by themselves.”

Benefits

Among the benefits that Surgutnefte gas is realizing are more efficient IT management and
business continuity supported by fault-tolerance in the data centre. The solution is proving
to provide protection for corporate data, and employees are benefiting from single sign on
service. Integration for single sign on Surgutnefte gas previously operated a UNIX platform
to support some of its SAP applications. Because this technology uses distinct standards,
Microsoft Windows operating system users could not previously access all the software
tools they needed with a single sign on authentication process. Using the Kerberos
protocol, a standard that is available with Windows Server 2003, Microsoft Services and
Surgutnefte gas were able to deliver a single sign on service for all applications across the
network. This capability results in significant time savings for end users.

High Systems Availability

The new technology tools offer business continuity supported by fault tolerance across the
data centre. In addition, constant monitoring of the new solution ensures maximum
performance and minimizes unplanned downtime. Zubanov says, “There is no single point
of failure in the data centre. This ensures reliable access to critical applications and data at
all times. For example, the mail system is built using two-node clusters, ensuring business
continuity. At the same time, the data storage system is backed up using mirrored RAID
[redundant array of independent disks] arrays on HP [Hewlett-Packard] EVA 5000 hardware,
and e-mail data is protected using Microsoft Cluster Service.”

Automated HR Management Processes

The new solution has integrated the HR module of SAP with the central management
features of Active Directory. As a result, many processes that previously required
intervention from IT staff are now automated. Personnel records, for example, can be
created by the system when a new member of staff joins the company. The system sends an
alert to the new employee’s manager when the profile has been set up. In addition, users’
records can be modified when their personal details, such as surname, place of work,
position, or home address, change. Records will be also removed from the Active Directory
and e-mail profiles when an employee leaves the company. Ivan Bobrov, Head of the
Microsoft Services Department at Microsoft Corporation says, “Automating HR processes
has lightened the load on IT staff at Surgutnefte gas. It also helps to ensure the security of
the system and reduce human error by handling personnel records automatically.”

Microsoft Windows Server System

Microsoft Windows Server System TM is a comprehensive, integrated, and interoperable

server infrastructure that helps reduce the complexity and costs of building, deploying,
connecting, and operating agile business solutions. Windows Server System helps
customers create new value for their business through the strategic use of their IT assets.
With the Windows Server operating system as its foundation, Windows Server System
delivers dependable infrastructure for data management and analysis; enterprise
integration; customer, partner, and employee portals; business process automation;
communications and collaboration; and core IT operations including security, deployment,
and systems management.