The increasing interaction and convergence between the digital and physical worlds are driving sweeping changes across the globe. While this digital transformation provides the oil and gas industry with an unparalleled opportunity to enhance its value proposition, the pace of digital adoption has been slow as compared to some other industries. The recent oil and gas market dynamics of sustained low crude prices and subsequent underinvestment, combined with the continuing growth in future energy demand, should present the industry with the needed catalyst to accelerate digital adoption. The reality is, however, that there are a number of challenges which need to be overcome for the oil and gas industry to realise digital’s full potential. For example, the exponential increase in global information flows has created new risks and questions around data privacy, data sovereignty, intellectual property, and cybersecurity. In addition, the industry’s current business structure/model is not particularly conducive to collaboration and supply/value chain innovation, which are important aspects of the new digital value proposition. The time is ripe for an elevated dialogue between senior industry stakeholders (operators, service providers, regulators), policymakers, and new digital providers to discuss what is needed to enable and accelerate the industry’s Digital Journey. By pursuing digital transformation through a multi-stakeholder approach, the oil and gas industry stands to reap significantly higher benefits. Executive Forum Committee Edward Graham Chairman and President ExxonMobil Exploration & Production Malaysia Inc. Member, SPE Asia Pacific Regional Advisory Council Chairman, SPE Asia Pacific Regional Advisory Council Taskforce EXECUTIVE FORUM ADVISOR go.spe.org/19FAO1F Session Highlights Data and the Cloud Analytics Connectivity Talent and Organisation for the Future Industry Business Model and Value Chain Transformation Beyond Borders SPE Asia Pacific Executive Forum: The Digital Journey 26 – 27 FEBRUARY 2019 | KUALA LUMPUR, MALAYSIA Participation is by invitation only The Executive Forum is designed for senior executives in the oil and gas industry and digital/technology enablers whose principal functions include: • Executive, Business and Asset Management • Policy and Regulation • Digital, Strategic and Organisational Transformation • Data Science and Analytics • Digital and Information Technology Prof. Dr. Nasir Hj Darman Chief Technology Officer PETRONAS CO-CHAIRS Martin Kirk IT Manager – Asia Pacific Region Chevron Australia Pty Ltd Karl Le-Yon Edward Manager – Engineering North Asset Surface Technical ExxonMobil Exploration and Production Malaysia Inc. Zhiyong Zhao Vice President – Asia Hess Exploration and Production Malaysia B.V. Aravindh Kaniappan Regional Director – Industry Services, South and East Asia Intertek Khoo Choo Beng General Manager - Business Excellence Sarawak Shell Berhad Martin Kirk IT Manager – Asia Pacific Region Chevron Australia Pty Ltd Karl Le-Yon Edward Manager – Engineering North Asset Surface Technical ExxonMobil Exploration and Production Malaysia Inc. Zhiyong Zhao Vice President – Asia Hess Exploration and Production Malaysia B.V. Aravindh Kaniappan Regional Director – Industry Services, South and East Asia Intertek Khoo Choo Beng General Manager - Business Excellence Sarawak Shell Berhad COMMITTEE MEMBERS Nathan McAullay Manager – Information Technology Infrastructure, Asia Pacific and Middle East ConocoPhillips Australia Mohd Zaki Md Isa General Manager – IT ExxonMobil Exploration and Production Malaysia Inc. Juan Carlos Palacio Regional Manager, Asia Pacific Halliburton Bundit Pattanasak Acting Senior Vice President, Technology and Knowledge Management Division PTT Exploration and Production Public Company Limited Rudy Poinin APAC Integration Director and Digital Champion TechnipFMC Azhar Abdullah Managing Partner Petrobyte
Transcript
The increasing interaction and convergence between the digital and physical worlds are driving sweeping changes across the globe. While this digital transformation provides the oil and gas industry with an unparalleled opportunity to enhance its value proposition, the pace of digital adoption has been slow as compared to some other industries. The recent oil and gas market dynamics of sustained low crude prices and subsequent underinvestment, combined with the continuing growth in future energy demand, should present the industry with the needed catalyst to accelerate digital adoption.
The reality is, however, that there are a number of challenges which need to be overcome for the oil and gas industry to realise digital’s full potential. For example, the exponential increase in global information flows has created new risks and questions around data privacy, data sovereignty, intellectual property, and cybersecurity. In addition, the industry’s current business structure/model is not particularly conducive to collaboration and supply/value chain innovation, which are important aspects of the new digital value proposition.
The time is ripe for an elevated dialogue between senior industry stakeholders (operators, service providers, regulators), policymakers, and new digital providers to discuss what is needed to enable and accelerate the industry’s Digital Journey. By pursuing digital transformation through a multi-stakeholder approach, the oil and gas industry stands to reap significantly higher benefits.
Executive Forum Committee
Edward GrahamChairman and PresidentExxonMobil Exploration & Production Malaysia Inc.Member, SPE Asia Pacific Regional Advisory CouncilChairman, SPE Asia Pacific Regional Advisory Council Taskforce
EXECUTIVE FORUM ADVISOR
go.spe.org/19FAO1F
Session HighlightsData and the Cloud Analytics Connectivity
Talent and Organisation for the Future
Industry Business Model and Value Chain Transformation
Beyond Borders
SPE Asia Pacific Executive Forum:The Digital Journey26 – 27 FEBRUARY 2019 | KUALA LUMPUR, MALAYSIA
Participation is by invitation only
The Executive Forum is designed for senior executives in the oil and gas industry and digital/technology enablers whose principal functions include:
• Executive, Business and Asset Management• Policy and Regulation• Digital, Strategic and Organisational Transformation• Data Science and Analytics• Digital and Information Technology
Prof. Dr. Nasir Hj DarmanChief Technology O�cerPETRONAS
CO-CHAIRS
Martin KirkIT Manager – Asia Pacific RegionChevron Australia Pty Ltd
Karl Le-Yon EdwardManager – Engineering North Asset Surface TechnicalExxonMobil Exploration and Production Malaysia Inc.
Zhiyong ZhaoVice President – AsiaHess Exploration and Production Malaysia B.V.
Aravindh KaniappanRegional Director – Industry Services, South and East AsiaIntertek
Khoo Choo BengGeneral Manager - Business ExcellenceSarawak Shell Berhad
Martin KirkIT Manager – Asia Pacific RegionChevron Australia Pty Ltd
Karl Le-Yon EdwardManager – Engineering North Asset Surface TechnicalExxonMobil Exploration and Production Malaysia Inc.
Zhiyong ZhaoVice President – AsiaHess Exploration and Production Malaysia B.V.
Aravindh KaniappanRegional Director – Industry Services, South and East AsiaIntertek
Khoo Choo BengGeneral Manager - Business ExcellenceSarawak Shell Berhad
COMMITTEE MEMBERS
Nathan McAullayManager – Information Technology Infrastructure, Asia Pacific and Middle EastConocoPhillips Australia
Mohd Zaki Md IsaGeneral Manager – IT ExxonMobil Exploration and Production Malaysia Inc.
Juan Carlos PalacioRegional Manager, Asia PacificHalliburton
Bundit PattanasakActing Senior Vice President, Technology and Knowledge Management DivisionPTT Exploration and Production Public Company Limited
Rudy PoininAPAC Integration Director and Digital ChampionTechnipFMC
Azhar AbdullahManaging PartnerPetrobyte
Executive Forum ObjectiveThe objective of the 2-day forum is to create the opportunity for an elevated conversation between senior industry stakeholders (operators, service providers, regulators), policymakers, and new digital providers on what is needed to accelerate the pace of digital adoption across the Asia Pacific oil and gas industry.
THE EXECUTIVE FORUM FORMAT AND POLICIES• The SPE Asia Pacific Executive Forum provides morning, afternoon, and evening sessions of short, scheduled and unscheduled presentations, with maximum
time available for informal discussions and exchange of experience.• To encourage the free interchange of information and ideas, SPE Forums are conducted o� the record. Written papers are prohibited, and extensive note
taking is not allowed. Mechanical recording of any portion of the Forum in any form (photographic, electronic, etc.) is prohibited. Information disclosed at a Forum may not be used publicly without the originator’s permission. Participants are specifically requested to omit reference to Forum proceedings in any subsequent published work or oral presentation.
• A short written summary of major issues and consensus arising from the Forum may be prepared and distributed to attendees after the Forum at the discretion of the forum committee, and with appropriate SPE approval.
• To encourage maximum discussion, lengthy, formal presentations are discouraged. Breakout sessions for discussions in smaller groups are common. Participants are encouraged to come prepared to contribute their experience and knowledge, NOT to be spectators or students.
• To create a cohesive group in which discussion is free flowing, attendance at Forums is limited, and only registrants are allowed to attend sessions. To ensure opportunities for formal and informal discussions, all attendees are expected to attend every Forum session
Executive Forum Programme ScheduleTime Room 1
Opportunities and Technologies: Digital Enablers for the Oil and Gas Industry – What is available out there?
Strategy and Application: How can Oil and Gas Companies Improve Business with Digital Enablers and Platforms?
Welcome and Introduction by Forum Advisor and Co-Chairs
Keynote Address: Digitalisation - A New Era for Oil and Gas
Group Presentation of Roundtable Discussions (Key Takeaways)
Co�ee Break
Networking Luncheon
Co�ee Break
Day Two Summary by Forum Co-Chairs
Wed
nesd
ay, 2
7 Fe
brua
ry 2
019 Subject 4: Talent and Organisation
for the Future Enabling and accelerating the workforce
transition to the Digital Era
Subject 4: Talent and Organisationfor the Future
Part 2
Subject 5: Industry Business Model and Value Chain Transformation
Part 2
Subject 6: Beyond BordersPart 2
Subject 4: Talent and Organisation for the Future
(1430 - 1500 hours)
Subject 5: Industry Business Model and Value Chain Transformation(1500 - 1530 hours)
Subject 6: Beyond Borders(1530 - 1600 hours)
Subject 5: Industry Business Model and Value Chain Transformation
Enabling and accelerating industry adoption of supply and value chain innovation
Subject 6: Beyond BordersEnabling and accelerating collaboration and
data sharing across the industry
0800 - 0815 hours(15 minutes)
0815 - 0930 hours(75 minutes)
0930 - 1000 hours
1000 - 1100 hours(60 minutes)
1100 - 1230 hours
1230 - 1400 hours(90 minutes)
1400 - 1430 hours
1430 - 1600 hours(90 minutes)
1600 - 1630 hours(30 minutes)
Preliminary Executive Forum Programme
Keynote Session: Digitalisation – A New Era for Oil and GasSession Managers: Prof. Dr. Nasir Hj. Darman, PETRONAS; Azhar Abdullah, Petrobyte
• Long-term energy demand and supply outlook• What is digitalisation: A new era of digitalisation in energy?• Digital themes• Putting a value on digital transformation• Barriers and inhibitors to digitalisation • Successful digital transformation recommendations
Subject 1: Data and the Cloud – Possibilities and PerilsHow can the industry fully benefit from the exponential increase in data resulting from the declining cost of sensors and data storage?
One of the most divisive subjects in moving the oil and gas industry forward is the cloud. While the world has embraced the ubiquitous cloud as a necessary part of the digital age, our industry has held back with deep concerns. This session examines the promise of accelerating our digital journey through harnessing the full capabilities of cloud, and more importantly, seeks to answer the inconvenient truths surrounding cyber-security, data sovereignty, and the “hidden costs” of data gravity.
• Cloud Computing: What happens in reality? Most people have a vague notion that their information is no longer stored in hard drives, but “someplace” else. Understanding what it means when consumers use cloud in their daily lives and what goes on behind this technology that seems to run the rest of the world is the key.
• The Prize of Cloud: From unlocking a wealth of data at a reduced cost, to harnessing the full value of data for greater business insights through better data connectivity, to leading at the forefront of delivering e�ciencies and maximising output. In recent years, these promises have become possibilities as cloud continues to innovate.
• New Oil in the Cloud: With cloud technology comes the ability to run data analytics and machine learning at a bigger and far-reaching scale. In fact, tech firms have been exploiting Big Data for years and are now posing threats to every level of the oil and gas supply chain.
• How bad can things be when it goes wrong? Cyber-security takes on a new meaning in the world of cloud. We will discuss risks and threats, ramifications of data sovereignty, and new security philosophy.
Subject 2: Analytics - Driving E�ciencies, Capitalising Future TechnologiesHow can the industry fully benefit from the rapid progress in advanced analytics resulting from improved computing capabilities?
Session Managers: Martin Kirk, Chevron Australia; Mohd Zaki Md Isa, ExxonMobil Exploration and Production Malaysia Inc.
Digital technologies are now forming an integral part of many oil and gas business strategies. They are increasingly being applied as a key enabler to all aspects of the hydrocarbon value chain, from exploration
and development through to marketing and delivery. This session will examine how key digital technologies such as mobile computing, machine learning, data science, robotic process automation and the industrial internet of things, are being used both within our industry and in other relevant businesses to improve performance. Key discussions will be on what is possible and how these disruptions may improve business outcomes through aspects such as production predictions, throughput optimisation, maintenance optimisation, outage predictions, and logistics e�ciencies.
Subject 3: ConnectivityHow can the industry fully benefit from the greater connectivity resulting from faster and cheaper data transmission?
The trend towards greater digitalisation is enabled by advances in data, analytics, and connectivity. Volumes of data have been increasing thanks to the declining costs of sensors and data storage. Advances in analytics is attributed to rapid growth in computing capabilities, and last but not least, greater connectivity is now realised with faster and cheaper data transmission.
People and devices are becoming increasingly connected; More than 3.5 billion people now use the internet, up from only 500 million in 2001* due to about 54% of households now have internet access at home. In the last five years, global mobile broadband subscriptions increased threefold and surpassed 4 billion active subscriptions in 2017, while mobile phone subscriptions reached 7.7 billion, surpassing total human population on earth.
With the power of “Internet of Things” (IoT), everyday objects such as watches, home appliances, and cars are connected to communications networks with access to a range of services and applications, such as personal healthcare, smart electricity grids, surveillance, home automation, and intelligent transportation. The number of connected IoT devices is forecast to grow from 8.4 billion in 2017 to over 20 billion by 2020**.
Financial markets, investment trends and digital disruption in other sectors also signaling the pervasiveness of digitalisation and the greater interactions between digital and energy worlds. The five largest publicly traded companies by market capitalisation currently are ICT companies with businesses, that either depend on digital technologies or provide related services. Energy companies, on the other hand, remain global leaders by revenue: six of the top 10 companies are in the energy sector, with the sole digital company – Apple – in 9th place***.
This roundtable discussion seeks to explore these questions:• How can the industry fully benefit from the greater connectivity
resulting in faster and cheaper data transmission, with the increase of smart devices, the internet of things connected to the network?
• What are the pain points, problems, or challenges we could solve through a more connected environment?
SPONSORSHIP SUPPORT INFORMATIONSponsorship support of the forum helps o�set the cost of producing events.
Supporters benefit both directly and indirectly by having their names associated with a specific event. While SPE prohibits any type of commercialism within the forum room itself, the Society recognises that supporting companies o�er valuable information to attendees outside the sessions.
Sponsorship BenefitsIn addition to onsite recognition, SPE will recognise sponsors on the SPE website and in materials for the event. Supporting companies also receive logo visibility during the event.
For More InformationFor available sponsorship opportunities, including benefits and pricing, contact Hanna-Rose Abdul Jalil at [email protected]
Tuesday, 26 February 2019
GENERAL INFORMATIONCommercialismIn keeping with the forum objectives and the SPE mission, commercialism in presentations is not permitted. Attendance CertificateAll attendees will receive a forum attendance certificate. Continuing Education UnitsThis forum qualifies for SPE Continuing Education Units (CEU) at the rate of 0.1 CEU per hour of the forum.Travel/visaAttendees are advised to book their airline tickets early. All travellers must be in possession of passports valid for at least six (6) months with proof of onward passage. Contact your local travel agent for information on visa requirements.Dress CodeBusiness attire is recommended.
GENERAL INFORMATIONCommercialismIn keeping with the forum objectives and the SPE mission, commercialism in presentations is not permitted. Attendance CertificateAll attendees will receive a forum attendance certificate. Continuing Education UnitsThis forum qualifies for SPE Continuing Education Units (CEU) at the rate of 0.1 CEU per hour of the forum.Travel/visaAttendees are advised to book their airline tickets early. All travellers must be in possession of passports valid for at least six (6) months with proof of onward passage. Contact your local travel agent for information on visa requirements.Dress CodeBusiness attire is recommended.
Preliminary Executive Forum Programme (continued)
Wednesday, 27 February 2019
Executive Panel Session: Translating Digital into Business ResultsSession Managers: Prof. Dr. Nasir Hj. Darman, PETRONAS; Azhar Abdullah, Petrobyte
World Economic Forum (WEF) 2017 report claims that digital transformation in the oil and industry could unlock approximately $1.6 trillion of value for the industry, its customers and the wider society. This total estimated value from digitalisation can further increase to $2.5 trillion if existing organisational and operational constraints are relaxed, and the impact of "futuristic" technologies, such as cognitive computing, is considered. However, the speed of digital revolution and the realisation of the potential value has been slower for the oil and gas sector versus other sectors such as finance, retail, and transport. Digitalisation carries three main cross-cutting risks which, while not unique to the energy sector, need to be assessed and managed: cybersecurity, privacy and major disruptions in the energy sector and the broader economy, a�ecting jobs and skill requirements. It is changing work patterns and tasks, causing job losses in some areas and creating new jobs in others. The impact varies across the di�erent parts of the energy sector. Policy makers in the energy field should participate fully in relevant government-wide decision-making on digital matters. The Executive Panel Session consisting of the energy sector senior executives, government and digital enablers will discuss key points at issue:• What are some of the key barriers to the digital change? • Are there corporate culture challenges, people issues, technology
shortcomings, and/or regulatory frameworks that we are struggling to adapt to a new era of data sharing along the entire oil and gas value chains?
• Can we take a systems approach to create a true step-change in the safety, quality, and e�ciency of our operation?
More importantly, as leaders of the industry, we have to initiate the steps to change our mindset and embrace the transformation in our culture.
Subject 4: Talent and Organisation for the FutureEnabling and accelerating the workforce transition to the Digital Era
There is widespread recognition among leaders in most industries, that the role of digital technology is rapidly shifting from being a driver of marginal e�ciency to an enabler of fundamental innovation and disruption. Cause of large scale and sweeping transformation across multiple aspects of business, providing unparalleled opportunities for value creation and capture, while also representing a major source of risks. There has never been a better time to be a worker with special skills or the right education, because these people can use technology to create and capture value. However, there has never been a worse time to be a worker with only ordinary skills and abilities to o�er, because computers, robots and other digital technologies are acquiring these skills and abilities. While digital skills requirements vary from one organisation to the other based on their digital maturity and transformational capability, it is clear, that digital technology, will transform most industries with many factors that need to be understood, such as the pace of changing customer expectations, cultural transformation, outdated regulations, identifying and accessing the right skills. In this discussion, as tasks become more demanding and complex, we will strive to better understand the dilemmas, challenges as well as current and future impacts of digitisation on workforce and future organisation. In the midst of dilemmas, challenges and opportunities what is the right approach and strategy for reskilling and acquisitions of new skills? What impact the current and future organisation structures?
Subject 5: Industry Business Model and Value Chain TransformationEnabling and accelerating industry adoption of supply and value chain innovation
Session Managers: Karl Le-Yon Edward, ExxonMobil Exploration and Production Malaysia Inc.; Juan Carlos Palacio, Halliburton
Legacy business models and ecosystems in multiple industries are being
revolutionised by digital innovations that are challenging the market share, relevance, and unique roles of previously dominant incumbent players. One such area of disruption is in the emergence of “conduits” that quickly bring together producers and customers in high-value exchanges. These have challenged traditional “pipeline” business models controlling a classic value-chain model, by introducing platform concepts that allow orchestration of value on a new level. Advances in computing and communication have also allowed businesses to extend relationships with customers, and taking advantage of these digital technologies requires companies to create a more interdependent architecture for innovation. With new functionality and greater reliability for products, data availability has cut-through traditional business relationship boundaries and redefined relationships with old business partners. Understanding where the oil and gas business model fits in this changing environment is a challenging discussion. In doing so, some key elements must be considered including but not limited to the following:• Advantages and challenges that the digital investment and
transformation brings• Lessons learned from other industries to capture wins• The “lagging” nature of our industry in adopting digitally transformed
business models• What the oil and gas industry status quo can or cannot do to adapt to
and/or adopt the new business strategy approaches• Risks and what it takes to create a new order for our industry in the digital
era There are many complexities in defining a potential business model for such di�erent way of doing business and conducting operations. Thus, this session attempts to simplify the problem into simpler pieces and questions that could serve as a road map to go from “C” (current situation) to “D” (the Digital era). The session will also explore key relationships, common areas, and collective actions that players in our industry need to pursue together, in order to capture the best of shifting business models. Companies will have to make di�cult decisions that leave members of their legacy ecosystems behind. Some partners will necessarily turn into competitors, while others may simply become obsolete.
Subject 6: Beyond BordersEnabling and accelerating collaboration and data sharing across the industry
Session Managers: Prof. Dr. Nasir Hj. Darman, PETRONAS; Bundit Pattanasak, PTT Exploration and Production Public Company Limited
Facing the same challenges from marginal field development and the downturn of oil and gas industry, oil companies are looking for ways to collaborate and share data, infrastructure and resources to optimise costs and accelerate innovative technology development. It becomes more obvious as the rules of oil and gas business changed. Oil companies see the benefits of moving beyond the old competitive strategies to explore for the vast potential of integrated values through collaboration. The sharing among oil and gas industry initially started in the area of Security, Safety, Health and Environment Management (SSHE), where it is considered the most critical aspect in our industry as it is a license to operate. Later on, we have come to see more collaborative e�orts in other key areas such as research and technology development among NOCs, IOCs and serviced companies, as well as academic institutes with the aim to create optimum benefits for sustainable operations. Today’s digital age is about pace, collaboration and going digital. Digitalisation allows faster strategic decisions using technology such as cloud analytics, machine learning and artificial intelligence. The process requires data, and most importantly transparency in data sharing. Furthermore, we are not able to maximise the return if we do not share the complete data. The challenge is in ensuring ethical and secured data sharing across (oil and gas) and cross-industry (non-oil and gas), beyond borders. Are we willing to take the risk and do we know how big of a risk are we exposing ourselves to? It is believed that we still have room to improve in light of resource, framework, and technology sharing. This session is aimed to explore ways to collectively develop frameworks, best practices, and strategies to share data, technologies, resources, and the opportunities to fast-track value creation for the energy sector. Yet, we have to admit that there is still one challenging area of collaboration, as it concerns various government policies and regulations. A collaboration at this level needs to become a national agenda. Each country and region carries its own rules and regulations for petroleum exploration and production activities; nonetheless, it is not entirely impossible to achieve.
