Crescent Petroleum, the largest privately held upstream Oil & Gas company in the Middle East, has successfully deployed an Oil & Gas industry-specific solution for its operations from global technology company SAP.
The implementation is an extension of Crescent Petroleum’s solutions roadmap, which commenced in 2020 with Phase 1 implementation, representing the first global implementation of SAP S/4HANA Oil & Gas Model Company 1809 at the time, supporting plant maintenance, procurement, project systems, finance, human resources functions and HSE functions.
This second phase of the project saw Crescent Petroleum work closely with SAP Services to implement Upstream Hydrocarbon Accounting Management (UHAM) – including mass balancing – Integration with Plant Systems, Logistics, Management of Change, Resource Scheduling and Production Planning for its operations. Crescent Petroleum is the first company in the Middle East to roll out the UHAM module within the IS OIL solution stack of S4/HANA. The Phase 2 implementation was completed in a record time of 12 months and represents a significant advancement in Crescent Petroleum’s digital transformation journey, enhancing operational efficiency and enabling strategic growth across its regional footprint, resulting in the project being selected to be featured as SAP Success Story.
Ravi Kumar, Chief Corporate Officer of Crescent Petroleum and Board Member of the Crescent Group, said, “Having completed the Phase 1 of the SAP roadmap in a record 8 months, we set out to integrate Crescent Petroleum’s operations, providing a seamless flow of data, from Wellhead to Customer, in Phase 2. The benefits are significant as we have integrated data across disparate parts of the plant allowing us to seamlessly integrate plant systems with SAP systems, and ensure a single source of truth across the Company.”
Kumar added that digitizing the processes has accelerated Crescent Petroleum’s broader objectives of determining real-time visibility of information across the entire company and providing insightful data for a range of digital initiatives planned in future.
SAP Services was chosen for the transformation project due to its considerable expertise in the global Oil & Gas industry as well as its close involvement and experience with Crescent Petroleum during Phase 1. SAP worked closely with Crescent Petroleum’s digital transformation team to develop specific solutions that address company-specific use cases. One example is the custom trucking operations solution using the MII module of SAP, integrated with SAP’s invoicing engine. This involved integration with plant systems, loading dock systems and SAP S4/HANA modules in a single process chain bringing disparate processes into one seamless process with appropriate handshakes. Another complex area was the rebuilding of the plant network within SAP S4/HANA to map the production process and checkpoints within SAP to facilitate hydrocarbon accounting, inventory management, production management & forecasting, deferment management and invoicing all within SAP S4/HANA.
Sergio Maccotta, Senior Vice President, SAP Middle East & Africa – South, said, “We enjoy a strategic relationship with Crescent Petroleum, which is a strong advocate of ‘best practice adoption’ in the Oil & Gas industry, as confirmed when it won the SAP Quality Gold Award for best implementation in 2021 for Phase 1 of this project . A large part of the success of Phase 2 has been due to the close collaboration of all the team members involved. The result is an integrated solution delivering relevant and reliable data, streamlined processes, enhanced operational efficiency and easily managed reporting for compliance purposes. This plays a crucial role in the next phase of Crescent’s digital transformation.”
The Phase 2 project was executed in a hybrid delivery model with key activities such as solution workshops, user acceptance testing and cutover delivered on site, while build activities were conducted remotely.