The oil and gas industry is affected by operational and regulatory processes that are far more complex than in most other industries. A fluctuating oil price puts further pressure on infrastructure; a declining market requires streamlined work processes whereas a market on the rise calls for speedy scale-up possibilities.
More than a year back, prior to the dip in the oil price, the Norwegian operator Statoil announced a new cost-cutting program. The cost of producing oil on the Norwegian Continental Shelf had reached new heights and was hurting profitability. As with most booms cost seems to escalate rapidly and at some stage need to be addressed.
Statoil’s ambition is to save $1.3 billion a year from 2016 onwards. In addition to the rapid drop in oil price, this obviously has affected the supplier industry both on the Norwegian Continental Shelf as well as globally.
Still, successful companies must master such change in market conditions and be prepared to change direction as external forces are changing. Having the agility necessary to adapt is crucial both as an organization but also from an IT point of view.
IFS customer Apply Sørco, a Norwegian oil and gas contractor, realized they had to change in order to prepare for market changes. New enterprise software was one of the key components to strengthen their competitive edge in the market.
Apply Sørco replaced a number of old legacy systems with IFS Applications, and are now able to manage increasingly complex projects with better control and higher efficiency.
As Endre Røyneberg, the project manager for the implementation of IFS Applications at Apply Sørco, explains:
Our industry is going through a phase of low oil prices and cost efficiency measures among the oil companies, something that affects suppliers as well. IFS’s solution for EPCI Contractors will help us perform multiple projects of all sizes with increased efficiency and control.
When the market turns, we’re ready to grow while continuing to deliver projects safely, on time and on budget. As the organization is put under further pressure, we expect to enjoy even more benefits when it comes to process simplification and efficiency.
You can read the full story in a new customer case study.
Apply Sørco is just one of many oil and gas contractors who we have helped achieve more efficient working procedures, access to real-time data, enhanced data quality, lower costs and better project control.
Furthermore, one of our focus areas is implementation efficiency – and the project at Apply Sørco was implemented in just 13 months for approximately 900 users onshore and offshore.